Meta is reshaping its strategy toward AI and next-generation hardware, moving away from its metaverse push and planning cuts of up to 30% at Reality Labs, with layoffs anticipated but not yet finalized.Mark Zuckerberg and Reality Labs leaders delayed Phoenix from late 2026 to the first half of 2027 to ensure a polished, reliable product, while the company continues work on Malibu 2 and next-generation Quest headsets.Meta also acquired
Limitless, developer of the AI wearable
Pendant, and analysts expect reallocations to save the company about $4 billion to $6 billion by 2026 while the stock rose nearly 5% after the announcement.