Media: Meta* may significantly cut spending on building the metaverse — prioritizing AI
Meta's* management is reportedly considering a 30% budget cut for the metaverse team in 2026, according to Bloomberg sources.
Horizon Worlds
The proposal suggests that if this decision is approved, layoffs will occur at Meta* starting in January. These layoffs will primarily impact the department responsible for Quest VR headsets, but developers of the Horizon Worlds platform will also be affected.
The development of the metaverse at Meta* is overseen by one of two business groups within the highly unprofitable Reality Labs division. According to Bloomberg estimates, since the beginning of 2021, it has lost over $70 billion, prompting several investors to now urge the corporation to divest it.
Previously, the idea of creating a metaverse was one of the key initiatives for Meta*. It was this plan that led the corporation to rebrand itself from Facebook* to Meta* four years ago. However, as noted by Bloomberg, lately CEO Mark Zuckerberg has almost stopped mentioning the metaverse in his statements and has begun focusing more on artificial intelligence technologies. Specifically, he announced Meta's* plans to create a "superintelligence" that would surpass human intelligence.
Representatives of Meta* have not commented on Bloomberg's sources.
*Meta is recognized as an extremist company in Russia, and its activities are banned within the country.