Meta Platforms (META) plans to cut next year’s Reality Labs budget by 30%, targeting Meta Horizon Worlds and Quest VR unit. Layoffs could start in January. Reality Labs chief Andrew Bosworth’s earlier optimism contrasts with the cuts, part of Meta’s effort to find 10% savings across departments in finalizing the 2026 budget.

The VR business will bear the brunt of the cutbacks, with Horizon Worlds also facing reductions. Reality Labs, overseeing Meta’s AR and VR hardware bets, has incurred over $70 billion in losses since 2021, sparking investor frustration and regulatory scrutiny. Earlier layoffs in Oculus Studios and hardware teams were followed by Meta’s February job cuts.

While cutting back on metaverse investments, Meta is ramping up its AI ambitions with the launch of the Meta Superintelligence Lab. The company has recruited industry heavyweights like former Scale AI CEO Alexandr Wang and former GitHub CEO Nat Friedman, along with engineers from OpenAI and Apple. META stock trades at $666.45, up 4.20% on NasdaqGS.

Read more at Nasdaq: Meta Reportedly Plans 30% Metaverse Budget Cut As VR Division Faces Deep Reductions