Meta Platforms Finally Retreats From Funding Its Metaverse

The “metaverse” isn’t what it used to be. Meta Platforms is expected to cut resources from the virtual reality initiative Mark Zuckerberg once framed as the company’s future — and the reason for its name change — David E. Rovella reported for Bloomberg News.

Zuckerberg’s metaverse push has long drawn scrutiny from investors and watchdogs. (Photo: Mark Zuckerberg Facebook)

Executives are considering potential budget cuts of up to 30% for the company’s metaverse division next year, including the virtual worlds platform Meta Horizon Worlds and its Quest VR unit.

Cuts of that scale would likely include layoffs as early as January.

Zuckerberg’s metaverse push has long drawn scrutiny from investors, who view it as a costly distraction, and from watchdogs, who allege that children’s privacy and safety have been compromised in the virtual environments.

Wall Street appeared to welcome the retreat: Meta shares jumped as much as 5.7% after markets opened in New York — their biggest intraday gain since July 31 — before closing up 3.4%.