Name: Metas Zuckerberg plans deep cuts for Metaverse: Report
Uploaded: 2025-12-04T15:37:23.744Z
Duration: 2 min 16 s
Description: CNBC’s “Squawk on the Street” team discusses Meta shares as they move higher after Bloomberg reported that CEO Mark Zuckerberg is planning deep cuts for its Metaverse efforts.

CNBC’s “Squawk on the Street” team discusses Meta shares as they move higher after Bloomberg reported that CEO Mark Zuckerberg is planning deep cuts for its Metaverse efforts.

San Francisco

Meta is expected to make substantial budget cuts in its metaverse division, with some units facing reductions of up to 30%, according to a Bloomberg report. These cuts, which are higher than the typical year-end reductions, may involve layoffs as early as January.

CEO Mark Zuckerberg remains committed to virtual reality in the long term but appears ready to limit further losses in the metaverse area. The company is also expected to shift focus toward its advertising business and may lower its overall capital expenditure guidance as it adapts to competitive pressures in the tech industry.

Meta's Zuckerberg plans deep cuts for Metaverse: Report

Metashare is rallying here pre-market as Bloomberg reports that Mark Zuckerberg is planning some deep cuts for the so-called metaverse, Jim. They normally ask for 10 percent cuts toward year-end, more like 30 in some of these units. That's such a hitter. And that might well involve layoffs in January. I mean, he's unbelievable. I mean, he puts out a lot of different ropes, and the ones that are really good, he reels in. You're going fishing this weekend. You know how it works. And Michael Sebelius from JP Morgan, we're going for tarpon. They're not edible, but they are hard to bring in. Mark, Zuckerberg doesn't—I have to tell you, this guy, this guy's just—not unlike secession, he is a serious person. Is it not a—so it's not really an indictment that he put this line out on virtual reality, which by the way, the piece says he still believes in long-term. Well, he likes the form factor of the glasses, by the way. He pays a fortune to get a very good, seemingly good liquid glass person from Apple. I just think that he is tired of having that on the conference call saying how much he's losing in the metaverse. I mean, I'm not saying—I'm using that—he doesn't mind mentioning it in the conference call. He's a very transparent fellow. But, I mean, enough. You know, he said, OK, I've lost enough in this. I think we've made as much as we're going to. In the meantime, you know, I keep thinking that he is the winner in the advertising vertical because he can destroy OpenAI Chat GPT, because he's still the best place to advertise. And when that—when we get to Vera Rubin, we're going to see high-speed video on all the ads? How could you not put your ads against that? I was going to say, you do not think this portends lower CapEx guidance overall. Well, I do feel he's going to do that, because I think he—I think he underpromised, and he's going to overdeliver. He doesn't need to put all that money out. I think he put all that money out in part because, once again, see, I think Sam Altman is the person everyone wants to stop, because he's a doomsday machine. He's playing with somebody else's money until everybody says, you know what? What am I doing? And until someone blinks and says, I'm not funding this man anymore, I got to tell you, they all have to do whatever they—what any—any means necessary to destroy Sam Altman.

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