Watch Bloomberg Businessweek Daily LIVE every day on YouTube: http://bit.ly/3vTiACF.
Meta Platforms Inc.’s Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook Inc.
Executives are considering potential budget cuts as high as 30% for the metaverse group next year, which includes the virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit, according to people familiar with the talks, who asked not to be named while discussing private company plans. Cuts that high would most likely include layoffs as early as January, according to the people, though a final decision has not yet been made.
Savings from the metaverse cuts are expected to funnel toward other futuristic projects within Meta’s Reality Labs division, including AI glasses and other wearables, according to people familiar with the plans.
The proposed metaverse cuts are part of the company’s annual budget planning for 2026, which included a series of meetings at Zuckerberg’s compound in Hawaii last month, the people said. Zuckerberg has asked Meta executives to look for 10% cuts across the board, which has been the standard request during similar budget cycles the past few years, they added.
Today's show features:
- Gene Munster, Co-Founder and Managing Partner of Deepwater Asset Management, on the latest talent departure from Apple to Meta, and the AI arms race
- Bloomberg News Senior Technology Reporter Kurt Wagner on Meta CEO Mark Zuckerberg’s plan to cut resources for building the metaverse
- Jimmy Lee, CEO, The Wealth Consulting Group, on the market outlook heading into 2026
- Bloomberg News Consumer Reporter Jeanette Neumann on quarterly earnings from Ulta Beauty
See omnystudio.com/listener for privacy information.
