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Meta Plots Metaverse Cuts as Narrative Momentum Slows
The social media giant is reportedly planning major metaverse division cuts as the sector loses narrative enthusiasm.
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The metaverse narrative's biggest Big Tech backer is plotting a big pullback from the sector, Bloomberg reports. The outlet reports that Meta is considering spending cuts as high as 30%, driven by slowing VR momentum and a strategic shift toward smart glasses.
What’s the Scoop?
- Bigger-than-usual cuts: Bloomberg reported that Meta was weighing Reality Labs budget reductions of up to 30%, well above the 10% Mark Zuckerberg usually asks for during planning cycles.
- Financial strain: Reality Labs has posted large quarterly losses since Meta began breaking out its financials in 2020, though much of the spending reflected long-term R&D investment. More than half of 2022’s expenses went toward AR glasses development.
- Metaverse token slowdown: Crypto's metaverse tokens and projects have seen significant slowdowns and sell-offs in 2025, with MANA and APE both down over 80% on the year.