Business

Meta Plans Big Cut to Metaverse Budget
By Reuters | 04 Dec, 2025

After sinking $60 billion into Metaverse Meta plans to cut 30% from its budget as Zuckerberg makes an epic pivot to AI and the Superintelligence Lab.

Meta is expected to make up to 30% budget cuts for its metaverse initiative, Bloomberg News reported on Thursday, citing people familiar with the discussion.

The Facebook parent's shares rose nearly 4% in morning trading.

CEO Mark Zuckerberg has heavily bet on the augmented-reality unit, with the company changing its name to Meta from Facebook in 2021. The unit has burned more than $60 billion since 2020.

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, Bloomberg reported.

Cuts that high would most likely include layoffs as early as January, according to the report.

Meta did not immediately respond to a Reuters request for comment.

The report comes as Meta scrambles to stay relevant in Silicon Valley's artificial-intelligence race after its Llama 4 model met with poor reception. 

Earlier this year, the company launched a Superintelligence Lab after tapping Scale AI CEO Alexandr Wang, as part of a $14.3 billion investment that gave Meta a 49% stake in the startup. 

(Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D'Silva)