Major Retrenchment in Meta's Metaverse Strategy: Zuckerberg Plans to Cut Budget by 30%

According to Jinse Finance, Meta Platforms (META.US) CEO Mark Zuckerberg is expected to significantly reduce resource investment in building the metaverse—a strategy he once defined as the company’s future and which prompted Facebook’s rebranding, but is now undergoing a shift.

Sources revealed that management has discussed cutting next year’s metaverse division budget by up to 30%. This division covers virtual world product Meta Horizon Worlds and its Quest virtual reality business. If such substantial cuts are implemented, layoffs could begin as early as January next year, though a final decision has not yet been made.

The sources stated that the proposed metaverse budget cuts are part of the company’s budget planning for fiscal year 2026. They added that Zuckerberg has asked Meta executives to seek an overall 10% budget reduction, which has been a standard requirement in similar budget cycles in recent years. The sources pointed out that since Meta has not seen the industry-wide competitive momentum for metaverse technology that it once anticipated, the metaverse division has been asked to make even deeper cuts this year.