As part of a major strategic shift under CEO Mark Zuckerberg, Meta Platforms is preparing to significantly reduce funding for its metaverse division in 2026, Bloomberg is reporting.

According to sources familiar with internal discussions, the company might cut the metaverse budget by as much as 30%. This potential reduction comes as a surprise given that the rebranded company formerly known as Facebook had once bet heavily on the metaverse as its future.

The anticipated cuts are expected to impact the division responsible for the virtual reality platform Horizon Worlds and the VR hardware business Meta Quest (formerly Oculus). If implemented, the budget trimming would likely lead to layoffs beginning in January, as part of the broader 2026 budgeting process.

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