Meta* is preparing to let go more employees. Sources within the company told The Wall Street Journal (WSJ) that the company has arranged a number of layoffs in addition to the 11,000 people already laid off, which will have a major impact on the development of the metaverse. Although there has not yet been an official announcement, company sources said the dismissal is scheduled for early next week.
The new round of layoffs at Meta* may be comparable to the previous one. This time, however, they have decided to spread the layoffs over several months. The Meta* division responsible for the development of the metaverse, Reality Labs, will also undergo some cuts, which will mean the virtual reality project will stop. In general, this will result in employees who do not work in IT losing their positions (e.g. marketing and legal staff).
Back in November 2022, 11,000 employees were laid off due to cost-cutting measures, and a decision was made not to hire new employees until March 2023. Mark Zuckerberg, CEO of Meta*, stated that these layoffs were caused by inappropriate investments during covid-19, although which investments he is referring to is not known.
The financial report for the third quarter of 2022 indicated that Meta* expects a "significant" shortfall in funds due to the promotion of the metaverse in 2023. It was not specified how much Meta* intends to spend. The Reality Labs division has drained a total of about $6 billion over the past twelve months, and the company predicts that Reality Labs' operating losses in 2023 will be significantly higher than last year.
The company has also not said what it plans to use the increased Reality Labs budget for. Certainly, this expenditure is necessary to achieve the ultimate goal, but not immediately. Moreover, Meta* has chosen not to disclose exactly when they expect to complete their metaverse mission.
Meta*- recognized by Russian authorities as extremist and banned in the country
