Meta weighs deep reductions to metaverse unit while sector’s crypto tokens collapse: report

Meta is reportedly planning its most significant pullback from metaverse spending since 2021, with executives evaluating budget cuts of up to 30% for the Reality Labs division by 2026. This proposed reduction is significantly deeper than the 10% savings sought from most other company groups, potentially leading to staff reductions early next year. The aggressive cuts stem from the realization that the industry is not adopting VR and virtual worlds as rapidly as anticipated, despite CEO Mark Zuckerberg's previous reassurances about his commitment to the metaverse. This potential shift has positively impacted Meta's stock price. Concurrently, the broader metaverse sector in crypto markets has collapsed, with the total market capitalization falling from over $500 billion at the start of 2025 to under $3.4 billion, and major tokens like Render, Sandbox, and Decentraland trading near record lows. Meta's focus has increasingly shifted toward generative AI and tangible hardware like the Ray-Ban smart glasses, which offer clearer commercial returns.

(Source：The Block)