Meta Eyes 30% Cut to Reality Labs Budget
Meta Eyes 30% Cut to Reality Labs Budget
Meta execs are discussing cuts of up to 30% to the Reality Labs budget for 2026. CNBC reports, citing Bloomberg, and the news sent shares up 6% Thursday. Other outlets, including Yahoo Finance, Investing.com, and GuruFocus, pegged the gain at 4%.
Why the Cuts?
The push comes after years of big losses. Reality Labs has burned through more than $60 billion since 2020, Reuters notes via Yahoo Finance. Quiver Quant puts losses at over $70 billion since 2021.
Lower demand for metaverse tech plays a part too. Quiver Quant points to slower industry growth around Horizon Worlds and Quest VR.
Meta’s also turning toward AI. Recent flops like Llama 4 and a new push with Scale AI show the shift, per Reuters. Zuckerberg held budget meetings at his Hawaii spot last month to hash this out.
What’s Next
The cuts could mean layoffs starting in January. Nothing’s final yet—this is 2026 planning. Back in 2021, Meta renamed from Facebook to chase the metaverse. Zuckerberg called it the next big thing like social media was.
- Up to 30% trim targets Reality Labs overall.
- Part of yearly budget review.
- Stock popped on the report.
Meta hasn’t commented.
Sebastyen
Sebastyen Wolf is our Editor-in-Chief. He is an analyst and entrepreneur with experience working alongside early-stage founders, launching online ventures, and studying the data patterns that shape successful companies. A fan of Shark Tank since Season 1, he now focuses on translating the show’s most valuable insights into clear, practical takeaways for readers.
