Meta stock climbs 4% on report of planned metaverse cuts
Meta CEO Mark Zuckerberg has repositioned the social media giant as an artificial intelligence company.
Vincent Feuray | AFP | Getty Images
Meta Platforms Its shares rose nearly 4 percent on Thursday. Bloomberg CEO Mark Zuckerberg reportedly wants to make significant cuts to the company’s metadata resources.
Executives are considering budget cuts of up to 30 percent for the unit, Bloomberg said, citing sources familiar with the talks.
The move would be notable for parent company Facebook, which changed its name to Meta in October 2021 to signal it was moving beyond social media.
“Metadata is the next frontier, just like social networks were when we started,” Zuckerberg said at the time.
The proposed cuts will likely include layoffs, according to Bloomberg, which said the cuts are part of 2026 budget planning. The cuts will likely affect the company’s virtual reality group.
Meta did not immediately respond to a request for comment.
Meta’s Reality Labs unit, which develops the Quest VR headset family and Ray-Ban and Oakley AI smart glasses, reported a loss of $4.4 billion in the company’s latest quarter.
The division had recorded a cumulative loss of over $70 billion since late 2020, as of its third quarter report.
Read the full Bloomberg report Here.
Meta year-to-date stock chart.
