Metaverse Slimming Plan: 30% Cut Coming

Looks like Mark Zuckerberg is finally slowing down on the whole metaverse dream. $Meta Platforms (META.US)$ is now planning to cut the metaverse budget by up to 30%, and some staff in Reality Labs have already been laid off. After pouring more than $60 bil into VR and Horizon Worlds since 2020, the results just didn’t match the hype.

Instead, Meta is shifting more money into AI glasses and other wearables - basically gadgets that feel more practical for everyday use. Their Ray-Ban smart glasses are actually selling well and even tripled in sales over the past year, so you can see why they want to double down there.

Key takeaways:

– The metaverse isn’t “dead”, but Meta is clearly cooling off on it

– Most cuts hit the VR team (Quest, Horizon Worlds)

– Meta wants to focus more on AI devices, which seem more promising

– Investors liked the optimisation news - Meta’s stock jumped around 3-4%

– Cutting 30% of the metaverse budget could save $4-6 bil in 2026

Meta Share Price

To me, this feels like Meta finally admitting the metaverse hype came too early. AI glasses are getting real money and attention, so the pivot makes sense. But part of me wonders… will the metaverse ever make a comeback, or will it end up as one of tech’s most expensive experiments?

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Ziet Invests

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