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Reading: Meta to cut 10% of metaverse arm this week amid AI push: Report
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Your Crypto News Today > Metaverse > Meta to cut 10% of metaverse arm this week amid AI push: Report
Metaverse

Meta to cut 10% of metaverse arm this week amid AI push: Report

January 13, 2026 3 Min Read
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Meta is reportedly set to put off round 10% of workers from its metaverse arm this week, because the tech large focuses its assets on synthetic intelligence.

Meta might announce the cuts as quickly as Tuesday, the New York Instances reported on Monday, citing sources.

Meta’s Actuality Labs has round 15,000 workers members. The division focuses on digital actuality (VR) gear equivalent to headsets, in addition to working the agency’s metaverse platforms Horizon Worlds and Horizon Workrooms.

Round 10% of the division’s staff are anticipated to be minimize, round 1,500 individuals.

Cointelegraph has reached out to Meta for remark.

Meta chopping metaverse price range

Meta has been making gradual cuts to its metaverse price range over the previous 12 months because the agency ramped up its deal with synthetic intelligence (AI).

In early December, Meta’s shares spiked after stories emerged that the agency was probably slashing 30% from its metaverse price range and reallocating the funds to AI.

The NYT report additionally states that Meta plans to reallocate a few of its cash from Actuality Labs to extend the price range of its wearables division, which focuses on good glasses and wrist-worn units such because the Meta Neural Band.

Boxing in Meta’s metaverse. Supply: Meta

The agency, previously generally known as Fb, modified its title to Meta in October 2021 as a part of a significant pivot from social media to the metaverse, VR and augmented actuality.

Meta has misplaced over $70 billion on Actuality Labs because the unit was launched in August 2020, with the arm posting $4.4 billion value of operational losses in Meta’s final monetary earnings report from Q3 2025.

On the time, the metaverse was probably the most trending sectors in crypto and conventional tech, however consumer adoption has failed to achieve mainstream ranges.

At the moment, gaming-oriented metaverse platforms equivalent to Roblox and Fortnite dominate the market, with a whole bunch of hundreds of thousands of energetic each day customers. Nonetheless, these platforms are outliers, with the remainder of the sector having minuscule utilization metrics compared.

In the meantime, big-name blockchain metaverses equivalent to The Sandbox noticed simply 776 distinctive energetic wallets have interaction with the platform over the previous 30 days, per information from DappRadar. Some have even claimed Meta’s Horizon Worlds sees fewer than 900 each day energetic customers.

Whereas Meta could also be cooling down on the metaverse, CEO Mark Zuckerberg seems to nonetheless be bullish on the expansion potential of the metaverse, as soon as calling 2025 a “pivotal 12 months” for the trade.

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