Meta stock price today: Meta stock surges 5% after Mark Zuckerberg unveils plans for metaverse – here’s the breakdown

commodity stockShares of Meta Platforms rose 5% on Thursday after it was reported that CEO Mark Zuckerberg is planning significant changes to the company’s metadata efforts.

Meta Stock Jumps Today Amid Metaverse Budget Restructuring

Executives are reportedly considering budget cuts of up to 30% next year for Meta’s metadata division, which includes virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit, according to a report. According to Bloomberg, these reductions could include layoffs as early as January, but final decisions have not yet been made.

The proposed cuts are part of Meta’s 2026 budget planning, which includes a series of meetings at Zuckerberg’s Hawaii campus last month.
ALSO READ: Who is Alan Dye? Apple’s top design executive missed by Meta in a big blow

Mark Zuckerberg Plans Major Cuts to Meta’s Metaverse Division

While Zuckerberg has traditionally called for 10% cuts across departments during budget cycles, the metaverse group is facing deeper cuts due to lower-than-expected industry competition and higher costs. Most of the outages are expected to affect Meta’s virtual reality operations, which, along with Horizon Worlds, account for the majority of metadata spending.

Meta Stock Investors’ Concerns: Is the Metaverse Draining Meta’s Resources?

The metadata initiative has faced scrutiny from investors who see it as a drain on resources and from regulators who are concerned about the privacy and safety of children in virtual worlds. Since Facebook Inc. rebranded itself as Meta in 2021 and invested heavily in metadata, the company’s Reality Labs division has lost more than $70 billion.

ALSO READ: Jensen Huang’s secret soft spot for Elon Musk – here’s the story you didn’t know

Meta Stock Price Today as Focus Shifts from Metaverse to Artificial Intelligence and Smart Hardware

Zuckerberg has shifted the public’s focus away from the metaverse in recent months, emphasizing artificial intelligence developments and hardware like Meta’s Ray-Ban smart display glasses. Analysts have long suggested scaling back Reality Labs and prioritizing AI projects like Llama, Meta AI, and AI-powered hardware.

FAQ

Will there be layoffs at Meta?
Layoffs are likely to start from January, but final decisions have not yet been confirmed.

Is meta abandoning metadata altogether?
Not entirely, but the company is downsizing to focus more on artificial intelligence and profitable hardware projects.