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News Topical, Digital Desk : Meta founder and CEO Mark Zuckerberg is planning to significantly reduce resources and budget for his company's Metaverse project, the same project that was once touted as the company's future and led to Facebook 's renaming as Meta According to a Bloomberg report, discussions within the company are considering cutting the Metaverse Group's budget by up to 30% next year. This group includes the Meta Horizon Worlds and Quest VR units.
What does the report say ?
The report states that these cuts are part of Meta 's annual budget plan for 2026. Zuckerberg typically demands 10% cuts from all departments, but this time the Metaverse division has been asked for a larger cut because the company doesn't see the market competition it expected for this technology.
The biggest cuts are expected to be in Meta's virtual reality ( VR) group, as it accounts for a significant portion of Metaverse spending. The report also states that layoffs, along with resource cuts, could occur starting in January, though a final decision has not yet been made.
Meta 's entire metaverse effort falls under the Reality Labs division. This team works on hardware such as VR headsets and AR glasses. Since the beginning of 2021, this division has lost over $70 billion.
Why will the budget be cut ?
According to the report, Mark Zuckerberg is now focusing more publicly on AI and has virtually stopped mentioning the metaverse in earnings calls. The company is now emphasizing large AI models, AI chatbots, and AI -based hardware like Ray - Ban smart display glasses .
Mike Proulx, vice president at Forrester , has previously predicted that Meta could soon shut down metaverse projects like Horizon Worlds . He believes that doing so will allow Meta to focus more on its AI projects , such as Llama, Meta AI , and AI glasses .
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