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

[Meta Major Metaverse Strategy Retrenchment: Zuckerberg Plans to Cut Budget by 30%] 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 name change. This strategy is now undergoing a shift.

According to sources familiar with the matter, management has discussed cutting next year’s metaverse division budget by as much as 30%. This division includes virtual world product Meta Horizon Worlds and its Quest virtual reality business. If such a substantial cut is implemented, layoffs could begin as early as January next year, though a final decision has not yet been made.

Sources say the proposed metaverse cutback is part of the company’s 2026 budget planning. 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 over the past few years. The sources pointed out that because Meta has not seen the competitive intensity for metaverse technology across the industry as previously expected, the metaverse division has been asked to make even deeper cuts this year.