The risk of a recession in the US has raised concerns in Silicon Valley, and big tech firms have begun laying off their employees. Things are also going badly at Facebook’s parent company Meta. So, is the problem in Meta that the metaverse project cannot be explained correctly?
According to a statement by Meta CEO Mark Zuckerberg, the company is cutting more than 11,000 jobs, cutting its total headcount by about 13%.
In Meta’s financial statement, which was announced a few weeks ago, there was information that the company’s metaverse department had a budget deficit of more than $ 9.4 billion annually .
Meta management is making a big cut in the number of employees in order to reduce the company’s expenses. The company also plans to cut spending in other areas and halt hiring until next year .
Mark Zuckerberg cited macroeconomic developments as the reason for the company’s negative performance and said that the company’s “revenue fell well short of its own expectations” .
Meta will start dedicating more resources to its AI engine, Meta’s advertising platform and metaverse strategy to deal with the challenge it faces .
Meta will continue to maintain its “long-term vision for the metaverse” even though its total headcount is reduced by more than 10% .