The prospect of a recession in the US has triggered alarm in Silicon Valley, leading major tech firms to start laying off employees. This downturn has also affected Facebook’s parent company, Meta. There are questions about whether the challenges at Meta stem from difficulties in effectively conveying the metaverse project.
Meta’s CEO, Mark Zuckerberg, has announced that the company will be slashing over 11,000 jobs, reducing its total workforce by approximately 13%. A recent financial report from Meta revealed that the company’s metaverse division is facing an annual budget deficit exceeding $9.4 billion.
To curtail expenses, Meta’s management is implementing significant employee reductions. Additionally, the company plans to decrease spending in other areas and pause hiring until the following year.
Zuckerberg attributes Meta’s poor performance to macroeconomic factors, acknowledging that the company’s “revenue fell significantly short of expectations.”
In response to these challenges, Meta will reallocate more resources towards its AI engine, advertising platform, and metaverse strategy. Despite reducing its workforce by over 10%, Meta intends to uphold its “long-term vision for the metaverse.”
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