Meta to Make Deep Cuts to Metaverse Budget as AI Becomes Priority
Dec 4, 2025
Meta Platforms CEO Mark Zuckerberg plans to significantly cut spending on the company's metaverse efforts, according to reports from Bloomberg News. The expected budget cuts could be as much as 30% for the division responsible for building the metaverse, which includes Meta Horizon Worlds and the Quest virtual reality unit.
Meta has spent over $60 billion on its augmented reality and metaverse initiatives since 2020. The planned cuts mark a shift in strategy, as the company now aims to focus more on artificial intelligence (AI) and related technologies.
News of the possible cuts caused Meta's stock to rise by over 4%. The move signals a major change for the Reality Labs division, which had been at the center of Meta's vision for a shared virtual world.
What is the metaverse?
The metaverse is a virtual environment where people can interact, work, and play using digital avatars and virtual reality technology.
Why is Meta cutting its metaverse budget?
Meta is scaling back its metaverse investments to put more focus and resources into artificial intelligence and related products.
How have investors reacted to this news?
Meta's stock price went up by over 4% after the reports on the planned budget cuts.
Which products are affected by the budget cuts?
The planned cuts will impact Meta's Horizon Worlds and Quest virtual reality products, which are part of the company's Reality Labs division.
Sources
Meta CEO Zuckerberg plans deep cuts for Metaverse efforts, Bloomberg News report...
Reuters
Reuters
Meta's Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, Bloomberg News reported on Thursday, citing people familiar with the discussion.
Meta's augmented-reality unit has burned more than $60 billion since 2020.
Yahoo Finance
Yahoo Finance
Meta is reportedly expected to make up to 30% budget cuts for its Metaverse initiative, according to Bloomberg News. Meta has been investing heavily in AI products and the metaverse - a shared virtual environment that it bets will be the successor to the mobile internet.
Meta's metaverse retreat: Zuckerberg prepares deep cuts as AI takes center stage
Invezz
Invezz
Mark Zuckerberg is proposing steep cuts to Meta's metaverse effort as the company is shifting focus and capital toward AI and AI-linked hardware. This move signals a major strategic shift for Reality Labs and the future of Horizon Worlds and Quest.
Meta Stock Jumps On Report Zuckerberg Wants 'Deep Cuts' For Metaverse Budget
Investors Business Daily
Investors Business Daily
Meta stock surged after Bloomberg reported that executives are considering budget cuts up to 30% for the metaverse.
Zuckerberg to Make Deep Cuts in Metaverse Group
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Meta Platforms Inc.'s Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason why he changed the name from Facebook.
Meta Platforms considers major cuts to Metaverse initiatives
Proactive Investors
Proactive Investors
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) shares added more than 4% on reports CEO Mark Zuckerberg is considering scaling back the company's Metaverse investments. According to a Bloomberg News report, Meta executives have discussed potential budget cuts of up to 30% for the metaverse gro...
Nvidia CEO Jensen Huang's trip to Washington, Meta stock spikes on reports of Me...
Yahoo Finance
Yahoo Finance
Morning Brief anchor Julie Hyman breaks down the latest market news for December 4, 2025. Nvidia CEO Jensen Huang met with President Trump and top Republicans yesterday to discuss policies on AI chip controls.
Meta reportedly plans to slash Metaverse budget by up to 30%
TechCrunch
TechCrunch
Meta may be planning to make serious cuts to its Metaverse division, Bloomberg reported, citing anonymous sources.
Meta shares climb on report Mark Zuckerberg plans to ax up to 30% of metaverse b...
New York Post
New York Post
Cuts that high would most likely include layoffs as early as January, according to the report.
Meta's stock could be just getting started as Zuckerberg takes aim at ‘black hol...
Market Watch
Market Watch
Meta Platforms could be set to scale back its artificial-intelligence ambitions, much to the relief of anxious investors.
Why Meta Platforms Stock Popped Today
The Motley Fool
The Motley Fool
Meta Platforms has been criticized by investors for spending tens of billions of dollars on the metaverse, which has never really taken off. Reports suggest that the company is planning cuts of up to 30% to its metaverse budget.
Meta eyes budget cuts for its metaverse group as CEO Mark Zuckerberg doubles dow...
Business Insider
Business Insider
Meta plans to cut its budget by up to 30% in its Reality Labs metaverse division. It's considering job cuts as part of that move, leaving employees uncertain.
Meta Considers 30% Budget Cuts for Metaverse Group Amid Shift to AI
PYMNTS
PYMNTS
Meta executives are reportedly considering cutting as much as 30% of the budget of the company's metaverse group amid a shift of resources toward artificial intelligence. The proposed cuts are part of Meta's annual budget planning for 2026, and they could lead to layoffs as soon as January, Bloomber...
Meta's Metaverse May Be Shrinking. Investors Are Happy and the Stock Is Surging.
Investopedia
Investopedia
Shares of Meta Platforms (META) surged Thursday following a report that the company is looking to significantly cut spending on its "metaverse" projects next year.
Meta Plans Big Cuts to Its Metaverse Efforts
Bloomberg Technology
Bloomberg Technology
Meta is expected to meaningfully cut resources for building the so-called metaverse, an effort CEO Mark Zuckerberg once framed as the future of the company. Bloomberg's Kurt Wagner discusses the news and the reason behind it with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
Meta's Metaverse Rollback: Why Investors Are Buying The Pivot
Seeking Alpha
Seeking Alpha
Meta Platforms, Inc. is rated a Buy, with shares viewed as undervalued and offering solid value into 2026. META's strategic pivot away from the metaverse toward AI, while maintaining balance sheet strength, is seen as a positive catalyst. Despite aggressive AI capex and expense growth, META maintain...
Meta Weighs Cuts to Its Metaverse Unit
NYTimes
NYTimes
Meta plans to direct its investments to focus on wearables like its augmented reality glasses but does not plan to abandon building the metaverse.
Meta's Metaverse Cuts Not Surprising: EMARKETER's Smiley
Bloomberg Technology
Bloomberg Technology
Minda Smiley, senior analyst at EMARKETER focused on social media, says she is not surprised by Meta's plans to cut resources for its metaverse unit. She discusses Meta's challenges to monetize the metaverse and AI with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
Meta Plans to Shift Spending Away From the Metaverse
WSJ
WSJ
Zuckerberg's bet on immersive online worlds has lost the company more than $77 billion since 2020.
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