Meta’s Metaverse Crisis 📉: Will It Crash? 💥

Tech

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Meta may reduce its metaverse budget by as much as 30 percent next year, according to a Bloomberg report. While the exact cuts remain unfinalized, sources indicate they would affect the unit responsible for Meta’s Quest virtual reality headsets, alongside its social platform, Horizon Worlds. Following a shift in focus towards developing AI superintelligence, evidenced by recent high-profile hires including former Apple UI designer Alan Dyeto lead the design of “hardware, software and AI integration for its interfaces,” CEO Mark Zuckerberg asked Meta executives to target 10% budget reductions across the board as part of the annual planning process. However, the metaverse division, operating within Meta’s Reality Labs, was directed to implement even deeper cuts, citing a lack of industry-wide competition surrounding the technology compared to initial expectations. Bloomberg reports that Reality Labs has incurred over $70 billion in losses since early 2021, and Meta’s most recent earnings report revealed continued cash outflows from the division. As a potential consequence of these cuts, Meta could begin laying off metaverse staff as early as January.

Our editorial team uses AI tools to aggregate and synthesize global reporting. Data is cross-referenced with public records as of April 2026.