Meta reportedly plans to slash Metaverse budget by up to 30%

Meta is reportedly contemplating substantial reductions to its Metaverse division, according to a recent Bloomberg report that references unnamed sources. The social media giant may decrease the budget allocated to its virtual reality initiatives by as much as 30%, potentially leading to layoffs within the team. This anticipated move underscores the growing concerns surrounding Meta's Metaverse products, particularly the social virtual reality platform Horizon Worlds and the associated hardware, which have struggled to gain traction among users and within the broader market. Since its rebranding in 2021, Meta has faced skepticism from investors regarding the financial resources dedicated to Metaverse projects, which are currently incurring significant losses each quarter. While the company's ventures into artificial intelligence and smart glasses have shown more promise, investors remain apprehensive about the scale of Meta's ongoing investments. Interestingly, the company's stock price saw an uptick following the news, indicating that some stakeholders may view cost-cutting measures as a positive step. As of now, Meta has not issued a public response to the report.