Meta may be planning to make serious cuts to its Metaverse division, Bloomberg reported, citing anonymous sources.
Company executives are mulling slashing the virtual reality platform’s budget by up to 30%, the report said, adding that any reductions would also include layoffs.
If Meta does go ahead with such a plan, the move would reflect the overall lack of interest in products like Meta’s social virtual reality platform Horizon Worlds, as well as its virtual reality hardware — both in the industry at large, as well as among consumers.
Since Meta’s rebrand in 2021, investors have been skeptical of the company’s allocation of resources to Metaverse projects, which lose billions of dollars each quarter. The company’s efforts in AI and smart glasses have been more successful, though investors still worry that its investment plans are too steep.
Meta’s shares rose, however, following this report.
Meta did not immediately respond to a request for comment.
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