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Meta Cuts Metaverse Spending
Meta Platforms CEO Mark Zuckerberg is planning to cut up to 30% of the budget for its metaverse project, a move expected to save the company billions annually. The cuts follow the Reality Labs division’s $13.2 billion loss in 2023, which only generated $1.3 billion in revenue. Previous losses included $17.7 billion for the full year 2024.
The adjustments will affect products such as Horizon Worlds and the Quest virtual reality unit and may lead to layoffs, potentially starting in January 2024. This strategic shift reflects Zuckerberg’s acknowledgment that user interest in the metaverse has waned post-pandemic, redirecting funds toward more practical applications.
Meta’s stock saw an increase following the news of the budget cuts, showcasing investor confidence in the company’s pivot toward profitability and efficiency after significant prior declines related to its focus on the metaverse.
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