“Making Money” host Charles Payne analyzes the meta and reveals whether a year-end market rally is still on the table for “Bernie & Co.”
Meta is scaling back its Metaverse ambitions and directing resources toward AI-powered glasses and wearable technology, the company told FOX Business Thursday.
The changes follow reports that Meta could take up to a 30% cut from Metaverse Group, which CEO Mark Zuckerberg had previously touted as the company’s future.
The tech giant did not confirm specific numbers, but it said the adjustments would be made within Reality Labs, the division responsible for augmented reality and virtual reality projects.
“Within our overall Reality Labs portfolio, given the momentum, we are moving some of our investments from Metaverse into AI glasses and wearables. We are not planning any broader changes beyond that,” a Meta spokesperson told FOX Business.
Meta cuts 600 jobs as AI expands — as automation replaces human staff
Meta CEO Mark Zuckerberg, speaking in Menlo Park, Calif., announced Thursday that the company is directing resources toward AI-powered glasses and wearable technology. (Reuters/Manuel Orbegoso/Reuters)
According to Bloomberg, the proposed 30% job cuts are part of Meta’s 2026 budget plan, and cuts of this size could include layoffs as early as January.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Meta | Meta Platforms Co., Ltd. | 661.53 | +21.93 |
+3.43% |
Investors seemed to welcome the news, with Meta shares up 4%. The increase could signal a shift to more disciplined and strategic spending, as well as a sense of relief that the company is winding down costly Metaverse projects that have cost it more than $60 billion, Reuters said.
META’s new wearable lets you control your screen hands-free
Meta can take up to 30% off a Metaverse group. (Reuters/Albert Geer/Reuters Photo)
Meta is reportedly facing the challenge of selling its vision of an immersive Metaverse and expanding beyond the gaming community. However, the company has had early success with smart glasses, which explains the company’s decision to shift resources into the wearable technology space, Reuters added.
In contrast, competitors such as Google, Apple and Snap face challenges in turning their early products into commercially successful products, the outlet added.
Oakley and Meta have announced the new Oakley Meta HSTN AI-powered glasses. (Courtesy Meta/Fox News)
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The announcement comes as Meta is ramping up its efforts in the artificial intelligence (AI) race following reports of a lackluster response to its Rama 4 model.
Zuckerberg previously announced that his company would make up to $65 billion in capital spending this year, but the broader technology industry is expected to spend about $400 billion on AI in 2025, Reuters added.
FOX Business’ Breck Dumas and Reuters contributed to this report.
