Archive · 5 Dec 2025
Meta Stock Jumps 5% on Metaverse Cuts
Meta, the company that owns Facebook, is planning to spend a lot less money on its metaverse projects.
The metaverse is like a virtual world where people can work and play.
The company's CEO, Mark Zuckerberg, thinks this will save money and make the company more successful in the long run.
Because of this news, the company's stock price went up by 5%.
Meta has been losing a lot of money on these projects, so investors are happy that the company is making changes.
Instead of focusing on the metaverse, Meta is now more interested in artificial intelligence and making cool gadgets like smart glasses.
Meta's stock rose about 5% after reports of planned budget cuts for the metaverse division.
Executives are considering cutting the metaverse budget by as much as 30% next year.
Potential layoffs could happen as early as January, though no final decisions have been made.
Meta's Reality Labs division has lost over $70 billion since 2021 on metaverse projects.
Meta is shifting focus to AI and hardware, such as smart glasses, instead of the metaverse.
- Who
- Meta Platforms Inc. and CEO Mark Zuckerberg
- What
- Proposed budget cuts and potential layoffs in metaverse division
- When
- Discussions part of 2026 budget planning, potential layoffs in January
- Where
- Meetings held at Zuckerberg's Hawaii home
- Why
- To reduce costs and shift focus to AI and hardware
- Stock Increase
- 5%
- Proposed Budget Cuts
- 30% for metaverse
- Potential Layoffs
- As early as January
- Reality Labs Losses
- Over $70 billion since 2021
- New Focus
- AI and hardware
Sources
Why did Meta stock jump 5% today? CEO Zuckerberg’s new plans excites market
Mark Zuckerberg Plans 30% Budget Cuts To Build Metaverse, Layoffs Loom
Mark Zuckerberg plans big cuts to Meta’s Metaverse projects to focus on AI and generative tech
Meta Plans To Cut Up To 30% Of Metaverse Budget; Layoffs Loom
Meta prepares deep cuts to metaverse staff as focus shifts to AI glasses
