Meta reportedly plans to cut Metaverse’s budget by up to 30%

Meta Inc. may be planning significant layoffs at its Metaverse division, Bloomberg reported, citing anonymous sources.

Company executives are considering cutting the virtual reality platform’s budget by up to 30%, the report said, adding that the cuts would also include layoffs.

If Meta moves forward with such plans, the move would reflect an overall lack of interest in products like Meta’s social virtual reality platform, Horizon World, and virtual reality hardware, both in the industry as a whole and among consumers.

Since Meta rebranded in 2021, investors have grown skeptical of the company’s allocation of resources to the Metaverse project, which loses billions of dollars every quarter. The company’s AI and smart glasses efforts have been more successful, but investors remain concerned that its investment plans are too rapid.

However, Meta’s stock price rose in response to this report.

Mehta did not immediately respond to a request for comment.