Meta Platforms Inc.’s Mark Zuckerberg is reportedly planning significant reductions in resources for the company’s metaverse initiatives, once touted as its future and a key reason for rebranding from Facebook Inc.

The executives are weighing budget cuts of up to 30 per cent next year for the metaverse division, which encompasses the Meta Horizon Worlds virtual platform and the Quest virtual reality hardware unit, according to Bloomberg, citing sources familiar with internal discussions.

Such reductions could lead to layoffs as early as January, though no final decisions have been made.

The planned metaverse reductions are part of Meta’s 2026 budget planning, which included a series of meetings at Zuckerberg’s Hawaii compound last month, according to sources.

Zuckerberg has asked executives to identify 10 per cent cuts across the company, a standard request in recent budget cycles.

This year, the metaverse division was asked to reduce spending more aggressively, as Meta has not faced the level of industry competition it had anticipated, the sources said.

Most of the proposed reductions would affect the virtual reality unit, which accounts for the largest portion of metaverse-related spending, with additional cuts likely targeting Horizon Worlds.

A Meta spokesperson declined to comment.

Despite Zuckerberg’s continued belief that people will one day work and play in virtual worlds, the company’s metaverse vision has yet to gain traction.

In 2021, amid backlash over user safety and privacy concerns, Facebook rebranded as Meta and began heavily investing in the concept.

The metaverse team is part of Reality Labs, Meta’s division for long-term bets such as VR headsets and AR glasses. Since early 2021, Reality Labs has incurred losses exceeding $70 billion.