# Meta Plots Metaverse Cuts as Narrative Momentum Slows

*Author: Bankless*
*Published: Dec 4, 2025*
*Source: https://www.bankless.com/read/news/meta-plots-metaverse-cuts-as-narrative-momentum-slows*

---

The metaverse narrative's biggest Big Tech backer is plotting a big pullback from the sector, [Bloomberg](https://www.bloomberg.com/news/articles/2025-12-04/meta-s-zuckerberg-plans-deep-cuts-for-metaverse-efforts) reports. The outlet reports that Meta is considering spending cuts as high as 30%, driven by slowing VR momentum and a strategic shift toward smart glasses.   

### **What’s the Scoop?**
- **Bigger-than-usual cuts:** Bloomberg reported that Meta was weighing Reality Labs budget reductions of up to 30%, well above the 10% Mark Zuckerberg usually asks for during planning cycles.
- **Financial strain:** Reality Labs has posted large quarterly losses since Meta began breaking out its financials in 2020, though much of the spending reflected long-term R&D investment. More than half of 2022’s expenses went toward AR glasses development.
- **Metaverse token slowdown:** Crypto's metaverse tokens and projects have seen significant slowdowns and sell-offs in 2025, with MANA and APE both down over 80% on the year.
---

*This article is brought to you by [MetaMask](https://www.bankless.com/sponsor/metamask-1776260643?ref=read/news/meta-plots-metaverse-cuts-as-narrative-momentum-slows)*