Shares of Meta Platforms, Inc. (META) rose on Thursday after Bloomberg reported the technology company was planning to cut spending across its division by 10%, with as much as 30% cuts to its virtual reality group, which includes the so-called metaverse.
This could potentially include layoffs, which could come as early as January, and are part of the company’s 2026 budget, according to the article.
Meta—the owner of Facebook, Instagram, Threads, Messenger, and WhatsApp—develops metaverse technologies, such as the Horizon Worlds platform.
Fast Company has reached out to Meta for comment.
Meta stock rose 5.7% in early trading Thursday, before settling up a few percentage points. At the time of this writing on Thursday afternoon, Meta’s stock price was up about just under 4%.
Bloomberg cited anonymous sources and said Wall Street investors reportedly sees the division “as a drain on resources,” while internet watchers have concerns about the VR’s ability to safeguard children.
The news is significant because the metaverse is widely considered a pet project of Meta CEO Mark Zuckerberg, who had previously identified it as the future of Meta, even changing Facebook’s name to Meta for that very reason. Zuckerberg has also reportedly spent billions and employed thousands to make this dream come to fruition, according to The New York Times.
Ultimately, however, it seems critics and young consumers have not embraced the metaverse and Horizon Worlds, Meta’s flagship virtual-reality game, as the company had hoped.
Meta financials
Meta’s third-quarter earnings for 2025 beat analyst sales estimates, but it also reported a one-time $15.93 billion tax charge. The company’s revenue grew 26.2% year-over-year to $51.24 billion, beating the estimated $49.41 billion, with earnings per share coming in at $7.25 adjusted, beating analyst expectations of $6.69.
In the earnings report, Meta said the company plans to spend up to $72 billion on artificial intelligence in 2025.