Insider: Meta plans to implement a maximum 30% budget cut for the metaverse department next year.

Meta CEO Mark Zuckerberg is expected to significantly reduce resources for the so-called metaverse project a project that he once positioned as the company's future and was a core reason for renaming the company from Facebook to Meta. According to sources familiar with the matter, the executive team has discussed implementing a maximum 30% budget cut for the metaverse department next year, which includes the virtual world product Meta Horizon Worlds and its Quest virtual reality business line. The sources said that such a reduction is likely to start with layoffs as early as January, but the final decision has not been made. The sources stated that the reduction plan for the metaverse project is part of the company's 2026 budget planning, and Zuckerberg held multiple related meetings at his private estate in Hawaii last month. They added that Zuckerberg has instructed executives from all departments at Meta to seek a 10% overall reduction, which has been a standard requirement in budget cycles in recent years. The sources explained that due to Meta not seeing the industry-level competition expected in the technology sector, the metaverse department has been asked to make deeper cuts this year.