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Meta is reportedly considering significant budget cuts for its Metaverse division, potentially reducing spending by up to 30% and including layoffs, according to Bloomberg. The decision reflects declining interest in virtual reality platforms and hardware, both among consumers and industry stakeholders. Investors have long expressed skepticism about Meta’s Metaverse investments, which have consistently underperformed financially since the company’s 2021 rebrand. Despite these challenges, Meta’s stock prices increased following the report, suggesting market optimism about the strategic shift. The company has not yet commented on the potential changes, leaving uncertainty about the future of its Metaverse initiatives.
Key facts
- Meta may cut its Metaverse budget by up to 30% and implement layoffs.
- The move aligns with waning consumer and industry interest in VR platforms like Horizon Worlds.
- Investors have criticized Meta’s Metaverse spending as financially unviable since 2021.
- Meta’s stock rose after the budget-cutting report was disclosed.
- The company has not officially confirmed or denied the potential restructuring plans.
