- Meta Platforms will shut down its Horizon Worlds Metaverse for VR users in June, pivoting exclusively to mobile.
- Meta’s Reality Labs division has recorded cumulative losses approaching $80 billion since 2020.
- Major blockchain-based metaverse tokens have declined up to 99% from their 2021 highs.
- A speculative report suggests Meta may plan sweeping layoffs to offset AI infrastructure costs.
In a retreat from its once-aggressive metaverse strategy, Meta Platforms announced it will shutter the Horizon Worlds virtual reality platform for headset users on June 15. The company will pivot the service to a mobile-only experience, according to a Tuesday blog post.
Meta reportedly began experimenting with Horizon Worlds as a mobile platform in 2025. Samantha Ryan, VP of content at Reality Labs, said in February the focus would shift to be “almost exclusively mobile.”
Consequently, this marks a significant reversal for the company just five years after CEO Mark Zuckerberg championed the metaverse vision. Those ambitions have not translated into profits, as the Reality Labs division racked up a record $6 billion loss last quarter.
Cumulative losses for the metaverse division total almost $80 billion since 2020. In January, Meta eliminated 1,000 jobs from Reality Labs and shuttered some VR studios.
Meanwhile, Meta stock jumped 3% Monday following a speculative Reuters report claiming the company is “planning sweeping layoffs.” This could affect 20% or more of its workforce to offset AI and augmented-reality costs.
However, a Meta spokesperson told CNBC this was a “speculative report about theoretical approaches.” Nevertheless, the blockchain-based metaverse sector has also declined sharply since its 2021 hype.
Major players like Axie Infinity (AXS), The Sandbox (SAND), and Decentraland (MANA) have seen their tokens tank up to 99% from all-time highs, according to CoinGecko.
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