What just happened? Does Meta’s dream of a metaverse turn into a nightmare? The company announced that it is making cuts to the Reality Labs division, the business that focuses on Metaverse hardware and aspirations.
During a question-and-answer session on Tuesday, Chief Technology Officer Andrew Bosworth told Reality Labs staff that he expects changes within the division to be announced this week, reports Reuters, which seen a summary of the CTO’s comments.
A Meta spokesperson confirmed that Bosworth told Reality Labs employees that the division would have to drop some projects because the company could not afford to continue funding them, while others would be put on hold. It is not known which projects were affected.
The only good news for workers is confirmation from Meta that no layoffs are planned as part of the cost-cutting.
Meta’s belief that the metaverse will be an integral part of our future was exemplified by Facebook’s corporate name change last year. In February, it was reported that Meta had lost $500 billion since the name change and was no longer among the top ten US companies – Meta Platforms is currently number 34 in the Fortune 500.
In its first quarter financial results, Meta revealed that it had successfully added users after seeing them decline for the first time in the previous quarter. But Reality Labs still lost $2.96 billion — $1 billion more than the $1.83 billion it lost a year earlier — adding to the $10.2 billion the division haemorrhaged throughout 2021.
CEO Mark Zuckerberg has insisted that we won’t see his vision for the metaverse until 2030. But it seems not all of his employees separate their boss’ enthusiasm for the project, and neither do half of all teenagers. .