Meta is reportedly looking to reduce its metaverse-dedicated budget in the coming year. While official confirmation from the company remains awaited for now, rumours alone have pumped Meta stocks by around 25 percent in the last 24 hours.
Meta is considering to soon announce layoffs from its metaverse-focussed Reality Labs division, New York Times reported citing sources familiar with the matter. The move would be part of its plan to trim the budget for its metaverse developments for the time being.
The Mark Zuckerberg-led company is likely to finalize the decision in January. Some from the Reality Labs unit would be moved into the AI/VR glasses unit as part of the planned restructuring.
While clarity on the situation remains awaited, Zuckerberg this week announced the formation of a new creative studio within Reality Labs led by former Apple design executive, Alan Dye.
While the development appears to be focussed on Metaverse on the surface – it seems more inclined towards Meta’s AI glasses efforts.
Zuckerberg in his announcement on Threads said, “We’re entering a new era where AI glasses and other devices will change how we connect with technology and each other. The potential is enormous, but what matters most is making these experiences feel natural and truly centered around people. With this new studio, we’re focused on making every interaction thoughtful, intuitive, and built to serve people.”
Source: Threads/ Zuck
According to reports, Meta feels this is the right time to go bullish on AR/VR glasses as competing companies like Apple and Google have seemingly trimmed efforts.
Between September and October this year, Meta refreshed its eyewear lineup with Meta Ray-Ban Display, priced $799 and Gen 2 of Ray-Ban Meta – costing $379. Additionally, the company released its sports-focussed glasses for high intensity activities under the name – Oakley Meta Vanguard – that were released for $499.
As far as Reality Labs is concerned, it continues to be a loss-pit for Meta. In the third quarter of 2025, the company reported $4.4 billion in operating losses while having generated $470 million in sales.