Meta Plans Significant Reduction in Metaverse Funding, Reports Indicate
Meta Platforms is reportedly considering a substantial reduction in funding for its Metaverse division, with potential cuts reaching as high as 30%, according to a Bloomberg report that cites anonymous sources. This retrenchment could also lead to layoffs within the virtual reality platform.
If implemented, these budget cuts would signal a growing disinterest in Meta’s offerings, such as its Horizon Worlds social virtual reality platform and related hardware. Both industry analysts and consumers have raised concerns regarding the viability of these projects, leading to skepticism about the company’s strategic focus since its rebranding in 2021.
Investors have scrutinized Meta’s commitment to Metaverse initiatives, particularly as these ventures have resulted in significant financial losses, totaling billions each quarter. Meanwhile, the tech giant has found greater success in artificial intelligence and smart glasses, though apprehensions remain regarding the sustainability of its expansive investment strategy.
Despite the grim outlook for its Metaverse efforts, Meta’s stock experienced a modest uptick following the news of these potential budget reductions. The company has yet to release an official comment regarding these reports.
