Meta CEO Mark Zuckerberg has taken significant steps to transform the company’s focus, shifting its priorities toward artificial intelligence (AI). This change in direction comes as Meta Platforms saw a notable rise of approximately 4% in its stock value on Thursday, following a report from Bloomberg indicating that Zuckerberg is considering substantial budget cuts for the company’s metaverse division.
Sources familiar with the discussions revealed that Meta executives are contemplating budget reductions as severe as 30% for the metaverse unit. This potential strategy reflects a broader reassessment of how the company allocates resources, particularly in a time when profitability and efficiency are under increased scrutiny.
Since rebranding from Facebook to Meta in October 2021, the company has aimed to position itself at the forefront of the metaverse, a concept that Zuckerberg likened to the emergence of social networking during the early days of the internet. However, the current deliberations indicate that the company may be pivoting its resources more towards AI technologies, potentially signaling a shift in its long-term vision.
The suggested budget cuts could entail not only a reevaluation of spending but also layoffs within the organization. The virtual reality group within Meta, which was expected to be at the heart of its metaverse strategy, is likely to be particularly affected by these changes as the company looks ahead to its budget planning for 2026.
Despite the challenging landscape, these adjustments could position Meta to better harness emerging AI technologies, which continue to gain traction across various sectors. As the company navigates this transformation, its ability to balance innovation with financial responsibility will be critical for its future growth and success.
Meta has yet to release a statement in response to these developments.