On December 4, Mark Zuckerberg, CEO of Meta Platforms (META.O), announced his intention to substantially curtail the company's investment in the metaverse—a strategic focus he had previously hailed as the linchpin of Meta's (formerly Facebook) future and the impetus behind its rebranding. According to individuals with inside knowledge of the situation, Meta's leadership team has deliberated over a potential budget reduction of up to 30% for its metaverse division in the upcoming year. This division is chiefly tasked with developing the virtual world product, Meta Horizon Worlds, and overseeing the Quest virtual reality business. Should the budget undergo a significant cut, staff reductions could commence as early as January of the following year, although a definitive decision remains pending. The proposed metaverse budget cut is reportedly integrated into the company's fiscal planning for 2026. Zuckerberg has mandated that Meta's senior management institute a company-wide budget reduction of 10%, a standard practice in the company's budgetary processes in recent years. Insiders also highlighted that due to the absence of the anticipated fervent industry-wide competition in metaverse technology, the metaverse division has been directed to implement even more substantial budget cuts this year.