Meta Slashes Metaverse Budget by 30% Amid Strategic Pivot, Report Reveals

According to a report by Bloomberg, Meta Platforms Inc. is implementing a significant 30% reduction in its budget for the Reality Labs division, the unit responsible for developing its metaverse and virtual reality ambitions. This strategic cost-cutting measure reflects a shift in priorities as the company navigates economic pressures and reallocates resources toward its core social media and advertising businesses, including a heightened focus on artificial intelligence (AI) development. The move signals a recalibration of Meta's long-term "metaverse" vision in response to current market realities and investor sentiment.