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Mark Zuckerberg to Cut Metaverse Project Budgets by Up to 30%

Mark Zuckerberg to Cut Metaverse Project Budgets by Up to 30%

Meta will slash spending on Reality Labs’ VR projects starting January, redirecting focus to AI-driven wearables after $70B in metaverse losses since 2021.

Summary

Meta CEO Mark Zuckerberg will cut Reality Labs’ metaverse budgets by up to 30%, with layoffs potentially beginning in January. Projects like Horizon Worlds and Quest VR will be scaled back as Meta reallocates resources toward AI glasses and wearables. The shift follows $70 billion in Reality Labs losses since 2021 and slower consumer adoption of VR. These cuts mark a strategic pivot toward emerging AI hardware technologies.

Terms & Concepts
  • Metaverse: A virtual reality space where users can interact with each other and digital environments, often via connected 3D worlds.
  • Horizon Worlds: Meta’s flagship social virtual reality platform, enabling users to create and explore interactive 3D environments.
  • Quest VR: Meta’s virtual reality headset product line designed for immersive gaming, experiences, and social interaction in 3D environments.