Meta Platforms saw its stock price climb about 4 percent on Thursday following reports that CEO Mark Zuckerberg plans to drastically reduce spending on the company’s metaverse projects. Sources close to internal discussions say executives are considering slashing the unit’s budget by up to 30 percent.
This potential move marks a sharp U-turn for the company formerly known as Facebook. Back in October 2021, the tech giant changed its name to Meta specifically to signal a pivot beyond social media apps. At the time, Zuckerberg famously declared that “the metaverse is the next frontier just like social networking was when we got started.” He bet the company’s future on virtual reality, pouring billions of dollars into hardware and software development.
However, the mood inside headquarters has clearly changed. These proposed cuts are part of the 2026 budget planning and will almost certainly result in layoffs. Reports indicate that the company’s virtual reality group will take the hardest hit. This suggests we will see fewer resources dedicated to building headsets and the virtual environments Zuckerberg once championed so aggressively.
Investors cheered the news immediately. Wall Street has felt nervous about the metaverse money pit for years. Shareholders generally prefer to see Meta focus on its core money-makers—Facebook, Instagram, and WhatsApp—rather than burning cash on a futuristic project that hasn’t gone mainstream yet. When a company cuts costs on a struggling, expensive division, the market usually takes it as a sign of smart financial discipline.
This decision reflects a broader reality in the tech industry right now. Growth at all costs is over; efficiency is the new goal. While Meta isn’t abandoning the metaverse entirely, they are definitely tapping the brakes. A 30 percent cut sends a clear message that the company needs to protect its bottom line. For the employees in the VR labs, unfortunately, this financial pivot likely means a difficult road ahead. Zuckerberg is proving he is willing to scale back his personal vision to keep the company’s stock moving in the right direction.
