Meta shares jump as they prepare major budget cuts for 2026

Meta shares rose sharply with Mark Zuckerberg preparing significant reductions to the company’s metaverse programs. The metaverse had been introduced as a major strategic shift but has not met internal expectations.

Meta executives have discussed cutting the 2026 metaverse budget by as much as 30 percent. The reductions would affect Meta Horizon Worlds and the Quest virtual-reality business within the Reality Labs division. The plans are expected to lead to layoffs as early as January, according to the report.

Zuckerberg has asked all divisions to identify savings of about 10 percent. The metaverse unit was directed to seek deeper cuts as part of the upcoming budget cycle.

The proposed reductions were discussed during Meta’s annual planning process for 2026. Meetings took place at Zuckerberg’s compound in Hawaii last month. Executives were instructed to continue the company’s recent approach of targeting broad cost efficiencies.

Zuckerberg told investors in 2021 that the metaverse represented the beginning of a new phase for the internet and for Meta. The initiative became a central focus during the early stages of the pandemic.

News of the planned cost cuts lifted Meta shares more than 5 percent in premarket trading in New York on Thursday. If the gains continued through the regular session, it would mark the largest intraday increase since an 11 percent jump in late July.

As of Wednesday’s close, Meta shares were up 9.3 percent for the year.

Meta’s efforts in other areas have produced different results. The company’s Ray-Ban smart glasses have been seen as a product line that has not faced the same performance challenges as the metaverse operations.

The budget review for 2026 remains underway. Additional details on staffing and product plans for Reality Labs are expected as the process continues and divisions finalize their savings targets.