Meta Platforms is scaling back its metaverse strategy, laying off approximately 10% of employees in its metaverse division as it pivots towards artificial intelligence. The company announced a halt in the support for new virtual-reality applications in its flagship virtual world app, Horizon Worlds. Initially, access via VR headsets was set to end on June 15; however, some existing VR experiences will continue to be supported.
CEO Mark Zuckerberg’s shift emphasizes AI development over immersive virtual worlds, with the company planning to invest at least $115 billion this year primarily in AI infrastructure, including new data centers. Since acquiring Oculus for $2 billion in 2014 and rebranding from Facebook to Meta in 2021, the metaverse has garnered around $80 billion in investments but remains a niche market compared to platforms like Roblox and Fortnite. Despite this shift, Meta will continue investing in virtual and augmented reality technologies, including future headsets and smart glasses.
