Meta (NASDAQ: META) plans to slash the budget for its metaverse division, Reality Labs, by 20% over the next two years, a new report has revealed.
Once seen as the company’s future, Reality Labs has lost favor with the leadership as the company’s metaverse ambition waned and its focus increasingly turned to other areas led by artificial intelligence (AI).
According to The Information, the Facebook owner is rescinding the blank check freedom that Reality Labs has enjoyed since its launch.
The outlet cited a former manager at the metaverse division who revealed that Meta’s leadership wants the budget cut by up to 20%, and it wants the bulk of the cuts to come this year.
Meta could save at least $3 billion with its intended spending cuts, analysts at the Bank of America say.
The cuts came just weeks after the division was reorganizedand some of its staff laid off. Reality Labs …