According to a report from Bloomberg, Meta may be planning to make serious cuts to its Metaverse division. Anonymous sources indicate company executives are considering slashing the virtual reality platform’s budget by up to thirty percent. The report notes that any such reductions would also include layoffs.
If Meta proceeds with this plan, it would reflect a broader lack of interest in products like its social virtual reality platform, Horizon Worlds, and its virtual reality hardware. This disinterest is seen both across the industry and among consumers.
Since Meta’s rebrand in 2021, investors have remained skeptical of the company’s heavy allocation of resources to Metaverse projects, which lose billions of dollars each quarter. The company’s efforts in artificial intelligence and smart glasses have seen more success, yet investors continue to worry that its overall investment plans are too steep.
Following the report of potential cuts, Meta’s shares rose. The company did not immediately respond to a request for comment.