Report: Meta May Slash Metaverse Budget By 30%

Meta is considering cutting the budget of its Metaverse division by as much as 30%, Bloomberg reported, citing unnamed sources. The reductions would likely include layoffs and reflect stagnant interest in Horizon Worlds and other virtual reality products, both across the tech industry and among consumers.

Since Meta’s 2021 rebrand, investors have questioned CEO Mark Zuckerberg’s heavy spending on the Metaverse, which continues to lose billions of dollars each quarter.

Meta Shares Rise 4% Amid News It Will Cut Metaverse Spendinghttps://t.co/72jqbldVE0 pic.twitter.com/uS8AuLTfFk

— Forbes (@Forbes) December 4, 2025

By contrast, Meta’s recent advances in AI and smart-glasses technology have gained more traction, though concerns remain about the scale of the company’s overall investment ambitions.

Meta’s stock rose after news of the potential cuts. The company has not commented on the report.

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tippinsightsTIPP Staff