Do you remember the time when the metaverse was on everyone’s lips and Mark Zuckerberg promised a digital future where reality and virtuality would become one? Today, this vision seems to be fading. What happened for Meta, one of the tech giants, to decide to revise its ambitions? Discover the reasons behind this strategic shift.
The 3 must-know facts
- Meta is ending its efforts to implement the metaverse in the professional sector.
- Meta’s Reality Labs division has reduced its workforce by 10%, or about 1,000 employees.
- Meta is now focusing on mobile experiences and tools based on artificial intelligence.
The reasons behind Meta’s decision
The dream of an immersive virtual world where one would work, play, and socialize as avatars, as imagined by Mark Zuckerberg, seems to be fading. Meta announced that it will reduce its investments in Reality Labs, its division dedicated to the metaverse. This decision results in a 10% reduction in workforce, or about 1,000 jobs cut, and the closure of three virtual reality game creation studios. This new direction marks a turning point for the company.
Changes in virtual reality offerings
With the announced closure of Horizon Workrooms, a virtual reality office platform scheduled for February 16, 2026, Meta is abandoning its ambitions to create immersive digital workspaces. Additionally, the company will end the sale of its VR headsets intended for professionals, signaling a significant change in direction.
Focus on mobile and artificial intelligence
Although Meta is not completely disengaging from the metaverse, the company seems to be redirecting its priorities towards mobile experiences with Horizon Worlds, as well as tools for creators and applications based on artificial intelligence. These headset-free experiences, accessible via smartphone, are now taking precedence, as are smart glasses, an area where Meta continues to play a major role.
Financial context and Reality Labs losses
Reality Labs has accumulated losses amounting to $70 billion since 2020, with a deficit of $17.7 billion for the year 2024 alone. These figures illustrate the financial challenges Meta faces in its pursuit of the metaverse. Despite the profitability of its advertising business, these colossal losses have likely contributed to the company’s decision to redefine its priorities.
The history of Meta and its evolution
Meta, formerly known as Facebook, was founded in 2004 by Mark Zuckerberg and his Harvard University classmates. Initially a campus social network, Facebook quickly evolved to become a global platform, integrating various features such as business pages and community groups. In 2021, Facebook was rebranded as Meta to reflect its ambition to focus on the metaverse, a vision that seemed promising but today is adjusting to economic and technological realities.