"Meta is planning budget cuts and considering job cuts as part of that across its metaverse unit, according to a person familiar with the matter. The company is considering budget cuts of up to 30% within its Reality Labs division, which could impact employees working on its virtual spaces platform, Horizon Worlds, according to the person Business Insider spoke to."
"Internally, employees face uncertainty about whether the planned cost cuts will ultimately lead to layoffs. Directors are telling employees that most of the reductions will come from operating expenses, according to two other employees, who asked to remain anonymous because they're not authorized to speak to the press. In addition to salaries, these expenses include payments made by Meta to third-party studios to create games for Horizon."
Meta plans up to 30% budget cuts within Reality Labs and is considering job cuts that could affect Horizon Worlds staff. Directors say most reductions will target operating expenses, including payments to third-party studios and potentially salaries. Reality Labs has accumulated more than $60 billion in losses since 2020. Meta has increased AI spending amid an expensive, competitive AI race. The potential cuts follow a recent executive strategy meeting at Mark Zuckerberg’s Hawaii compound. Meta’s stock rose about 4%, adding roughly $69 billion to market value and valuing the company near $1.68 trillion. The metaverse unit has been reorganized previously.
Read at Business Insider
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