Meta shares climb on report of possible 30% metaverse budget cut

Meta is reportedly cooling on the metaverse with planned 30% cuts in its virtual reality research department, Reality Labs, which shareholders seemingly support.

Social media giant Meta is reportedly planning to scale back its metaverse spending by up to 30% and redirect the funds into virtual reality glasses and artificial intelligence.

No final decision has been made yet, but budget cuts and possible layoffs are on the table for Meta’s Reality Labs division, mainly aimed at its virtual reality unit, which eats up the bulk of metaverse-related spending, Bloomberg and The New York Times reported on Thursday.

The budget cuts could come as early as January, but Meta plans to redirect resources to a Reality Labs unit developing augmented reality glasses.

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