Meta is scaling back its metaverse spending and redirecting resources toward AI-powered glasses and wearable devices, marking one of the company’s most significant strategic pivots in years. The shift comes as investor skepticism grows over the long-term commercial viability of virtual worlds and VR headsets,
the BBC reported on Friday, citing a company spokesperson.
The company has spent more than a decade pouring billions into the metaverse, an initiative that was central to CEO Mark Zuckerberg’s vision for the future of computing. That ambition also led Facebook to rebrand as Meta in 2021, signaling a company-wide commitment to building immersive digital spaces. However, momentum has stalled. Meta’s flagship VR platform, Horizon Worlds, has struggled to retain users, while sales of the company’s headsets have failed to justify the scale of investment.
Bloomberg reported Thursday that Meta plans to cut metaverse spending by up to 30%, sending shares up more than 3% as markets reacted positively to a potential recalibration. A spokesperson said the company is not planning “broader changes,” declining to comment on whether the shift could include layoffs across metaverse-focused teams.
Instead, Meta sees a faster path forward in wearable AI devices, particularly its new line of smart glasses, launched in September to stronger-than-expected demand. The latest models feature an on-lens display capable of describing real-world surroundings, identifying objects, and translating text. Analysts view the glasses as one of the first products to successfully blend AI assistance with hardware in a consumer-friendly form, a direction Meta now hopes to accelerate.
The move reflects wider industry trends. Companies across the US and China are racing to bring AI-enabled glasses and compact wearables to market, betting that users will gravitate toward lightweight, always-on assistance rather than immersive VR environments.