Meta Cutting Metaverse By 30%

Benzinga

Meta Platforms stock jumped after Bloomberg reported that Mark Zuckerberg is preparing major cuts to the company’s metaverse ambitions. Executives have reportedly discussed slashing Reality Labs’ budget by up to 30 percent, a division that has already lost more than $70 billion since late 2020. These cuts could include layoffs and would directly impact Meta’s virtual reality efforts, including the Quest headset line and Ray-Ban/Oakley smart glasses. This comes as Meta evaluates strategy for 2026 while investors push for profitability outside the metaverse. Bloomberg reported this morning, and traders reacted instantly.

Transcript

00:00Breaking news, Meta just shocked the market. Shares jumped over 4% this morning after Bloomberg

00:05reported that Mark Zuckerberg is preparing massive budget cuts to the Metaverse, cuts as high as 30%.

00:11And here's the twist, this is the same division Meta rebranded the entire company around

00:16back in 2021, but Reality Labs has now lost over $70 billion since late 2020,

00:23including $4.4 billion last quarter alone. Bloomberg says the cuts could even include

00:29layoffs and they're being planned for 2026, hitting Meta's VR and AR groups the hardest.

00:35Meta is trading around $663 at the time of recording,

00:39and Wall Street is clearly betting the pivot is real.

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