Catenaa, Thursday, December 04, 2025- Meta CEO Mark Zuckerberg is expected to cut about 30% of resources for building the so-called metaverse, with likely layoffs expected in January.
Bloomberg reported that executives are considering potential budget cuts as high as 30% for the metaverse group next year, which includes the virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit.
Cuts that high would most likely include layoffs as early as January, according to the people, though a final decision has not yet been made.
Meta stock rose by 6% on Thursday after the news report. The stock is up by 15% so far this year.
The proposed metaverse cuts are part of the company’s annual budget planning for 2026, which included a series of meetings at Zuckerberg’s compound in Hawaii last month, the report said.
Zuckerberg has asked Meta executives to look for 10% cuts across the board, which has been the standard request during similar budget cycles the past few years, they added.
The metaverse group was asked to cut deeper this year, given that Meta has not seen the level of industry-wide competition over the technology that it once expected, they said.
The majority of the proposed cuts are likely to hit Meta’s virtual reality group, which makes up the bulk of metaverse-related spend. Cuts would also target Horizon Worlds.
The entire metaverse effort has drawn scrutiny from investors, who have seen it as a drain on resources, as well as from watchdogs, who have alleged that children’s privacy and safety have been compromised in the virtual worlds.
Meta’s vision for the metaverse has not taken off despite Zuckerberg’s conviction, which he still has, that people will one day work and play in virtual worlds.
