Meta to cut Reality Labs budget by 30% in strategic pivot

Metaverse ambition scales back

Meta Platforms is preparing to reduce the budget for its Reality Labs division by up to 30% in 2026, according to a Bloomberg report published Thursday. The division, responsible for the company's virtual reality hardware and "metaverse" initiatives, has accumulated operating losses exceeding $70 billion since 2021. The reported cuts mark a significant departure from CEO Mark Zuckerberg’s previous strategy of aggressive, unparalleled investment in immersive digital worlds.

Sources familiar with the matter indicate that the budget adjustments were discussed during recent planning meetings at Zuckerberg’s estate in Hawaii. The reduction is expected to affect …