Meta stock surges 5% after Mark Zuckerberg unveils plans for metaverse - here's the breakdown

Meta stock: Shares of Meta Platforms jumped 5% on Thursday following reports that CEO Mark Zuckerberg is planning significant changes to the company’s metaverse efforts.

Meta Stock Today Jumps Amid Metaverse Budget Restructuring

Executives are reportedly considering budget cuts of up to 30% for Meta’s metaverse division next year, which includes the virtual worlds product Meta Horizon Worlds and the Quest virtual reality unit, as per a report. These reductions could involve layoffs as early as January, though final decisions have not been made, reported Bloomberg.

The proposed cuts are part of Meta’s 2026 budget planning, which included a series of meetings at Zuckerberg’s Hawaii compound last month.


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Mark Zuckerberg Plans Major Cuts to Meta’s Metaverse Division

While Zuckerberg has traditionally requested 10% cuts across departments during budget cycles, the metaverse group is facing deeper reductions due to lower-than-expected industry competition and high costs. The majority of the cuts are expected to hit Meta’s virtual reality operations, which account for most metaverse spending, along with Horizon Worlds.

Meta Stock Investor Concerns: Is the Metaverse Draining Meta’s Resources

The metaverse initiative has faced scrutiny from investors, who see it as a drain on resources, and from regulators concerned about children’s privacy and safety in virtual worlds. Since rebranding Facebook Inc to Meta in 2021 and betting heavily on the metaverse, the company’s Reality Labs division has lost more than $70 billion.

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Meta Stock Price Today As It Shifts Focus from Metaverse to AI and Smart Hardware

Zuckerberg has shifted his public focus away from the metaverse in recent months, emphasizing AI developments and hardware like Meta’s Ray-Ban smart display glasses. Analysts have long suggested scaling back Reality Labs to prioritize AI projects such as Llama, Meta AI, and AI-powered hardware.

FAQs

Will there be layoffs at Meta?

Layoffs are possible, potentially starting as early as January, but final decisions have not been confirmed.

Is Meta abandoning the metaverse entirely?

Not entirely, but the company is scaling back to focus more on AI and profitable hardware projects.