Meta Platforms CEO Mark Zuckerberg (pictured) reportedly hatched a plan to eliminate a chunk of resources for its metaverse group, which he previously championed as a key growth area.

Bloomberg reported Meta Platforms executives are mulling a 30 per cent budget cut for the metaverse sector in 2026 across Meta Horizon Worlds and its Quest VR division.

The news site noted those reductions will most likely include layoffs as early as next month, although a final decision is still pending.

During Meta Platforms’ annual budget meeting last month, Zuckerberg tasked executives to make 10 per cent reductions across the company, but Bloomberg reported it is a similar ask from previous budget cycles the last few years.

The news site’s sources stated the company is making deeper cuts to the metaverse sector because Meta Platforms has not faced the level of competition it previously expected.

Bloomberg reported the bulk of the proposed cuts are mostly likely to take place across its VR group, which accounts for most of the metaverse related expenditures.

Zuckerberg has been a big proponent of creating the metaverse, which is why he changed the company’s name from Facebook to Meta Platforms in 2021.

The company’s Reality Labs is home to its AR and VR technologies, but it has continued to lose billions of dollars.

A representative for Meta Platforms told Mobile World Live the company is shifting some of its investment from the metaverse toward AI glasses and wearables “given the momentum there”.

“We aren’t planning any broader changes than that,” the representative stated.