Meta Scales Back Metaverse, Focuses on AI
Update: 2025-12-05
Description
Meta is scaling back its metaverse ambitions, cutting up to 30% of its VR division. The shift focuses on AI-driven revenue opportunities. Metas Reality Labs, handling VR headsets and Horizon Worlds, will be impacted. The company acknowledges the metaverse investments lack of broad traction and is restructuring, consolidating teams, scaling back AR hardware efforts, and slowing metaverse engineering hiring. Despite reductions, the metaverse remains in Metas long-term roadmap, but the approach is now more incremental and cost-disciplined.
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