Wall Street Breakfast Dr Zuckerberg and the Metaverse of sadness
Dec 4, 2025
Meta is planning significant cuts to its Metaverse team, shifting focus to AI, which raises questions about its future. Jan LeCun is making waves by moving to a Paris-based AI startup, breaking the Silicon Valley mold. Meanwhile, Kroger faces challenges with a sales miss and revised guidance. On an intriguing note, Netflix is in the running for Warner Bros. Discovery, and experts outline five potential risks that could shape 2026, including the impact of an AI bubble.
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Meta Retracts Big Metaverse Bet
- Meta is planning deep cuts to its Metaverse group, including VR spending, as the project underperformed expectations.
- Investors and regulators view the Metaverse effort as a resource drain with safety and privacy concerns.
Prepare For Near-Term Cuts
- Zuckerberg asked executives for 10% cuts across the company and deeper reductions for the Metaverse unit this year.
- Expect layoffs and budget reductions as early as January if the plan proceeds.
LeCun Sees AI Work Moving To Paris
- Jan LeCun plans to leave Meta to start an AI company and says his work should happen outside Silicon Valley.
- He suggested Paris as a better environment for the kind of work still missing from current AI systems.