Meta stock surges after Zuckerberg plans deep cuts to metaverse efforts

Investing.com -- Meta Platforms (NASDAQ: META) stock surged over 6% Thursday morning following a Bloomberg News report that CEO Mark Zuckerberg plans to significantly reduce resources allocated to the company’s metaverse initiatives.

According to the report, Meta executives have discussed potential budget cuts of up to 30% for the metaverse group in 2026, which includes Meta Horizon Worlds and the Quest virtual reality unit. Cuts of this magnitude would likely result in layoffs as early as January, though no final decision has been made.

The proposed reductions are part of Meta’s annual budget planning process, which involved a series of meetings at Zuckerberg’s Hawaii compound last month. While the CEO has reportedly asked executives to look for 10% cuts across the board—a standard request during similar budget cycles in recent years—the metaverse group faces deeper cuts.

Bloomberg’s sources indicated that Meta hasn’t encountered the level of industry-wide competition in metaverse technology that it once anticipated. The majority of the proposed cuts would likely impact Meta’s virtual reality group, which constitutes the bulk of metaverse-related spending, as well as Horizon Worlds.

Meta’s metaverse investments have faced criticism from investors who view them as a resource drain.

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