Metaverse is out

After years of failing to make virtual reality profitable, Mark Zuckerberg’s metaverse push is winding down.

The project was once so central to the company’s plans that Facebook rebranded as Meta in 2021.

This week, the Wall Street Journal reported that Meta is laying off around 1,500 employees from its Reality Labs division, which develops VR and AR products.

Three VR game studios are being closed, while Horizon Worlds will continue operating on a smaller scale.

The cuts affect nearly 10% of the division and come as Meta shifts investment away from the metaverse and toward AI-powered wearables, including its smart glasses.

A company spokesperson confirmed the move follows a recent decision to redirect resources to hardware.

Reality Labs has reportedly lost Meta more than $77 billion since launching in 2020.

By 2023, the metaverse had already begun to fade from earnings calls, with analysts viewing the pullback as late but expected.

Focus has now turned to Meta’s AI smart glasses, though their future remains uncertain.

International shipments were recently paused due to inventory issues, and analysts have warned that privacy rules and market saturation could limit sales.

According to Bloomberg, Meta executives have discussed increasing production from 10 million units to as many as 30 million by the end of 2026, depending on demand.

While it’s unclear whether AI wearables will succeed, Meta’s metaverse ambitions are clearly no longer the priority.

Zuck shed a tear last night. - MV