Can Budget Reductions in the Metaverse Propel Meta Platforms Stock Growth by 2026?

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**Meta Platforms Layoffs and Shift in Strategy**

Meta Platforms (NASDAQ: META) announced on [date] that it will lay off 10% of its workforce in the Reality Labs division, signaling a shift in focus from the metaverse to artificial intelligence (AI). The layoffs come amid mounting losses, with the Reality Labs division reporting a loss of $19.2 billion in 2025, an increase from the previous year’s $17.7 billion loss. In contrast, the company’s Family of Apps segment, which includes Facebook, Instagram, WhatsApp, and Messenger, generated a profit of $102.5 billion last year.

This strategic realignment appears to be a cautious approach rather than an exit from the metaverse. Meta has indicated that savings from these job cuts will be redirected to enhance investments in augmented reality glasses. Although the company is still committed to the metaverse, investors are now questioning the overall efficiency of its expenditure amidst significant losses in this area.

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