Meta plans to reduce its investments in the metaverse unit by 10-30% due to financial struggles. The company aims to redirect funds towards augmented reality glasses, which have been successful since their introduction in 2021. Despite this shift, Meta does not plan to abandon the metaverse project.
Reality Labs, a division of Meta, has posted significant losses over the past four years. With decreased competition from virtual reality devices, executives believe they can slow down efforts and allocate resources more efficiently. The cuts may affect up to 30% of Metaverse unit employees, mainly those working on virtual reality headsets and social networks.
Meta’s focus will shift towards wearable technology, with a growing emphasis on artificial intelligence glasses. The company has introduced new smart glasses lines and incorporated an AI assistant into its existing products. This new direction aims to create more intuitive interactions between humans and technology.
Source: https://www.nytimes.com/2025/12/04/technology/meta-cuts-metaverse-unit.html