Crying uncontrollably when Facebook’s Meta Platform Inc had to reduce cost allocation to Reality Labs which are responsible for producing metaverse hardware products.
The new news was announced by Reality Labs Chief Executive Officer (CEO) Andrew Bosworth during the company’s question and answer session last week and the matter has been confirmed by a Meta spokesperson.
According to the announcement, Reality Labs expects changes to be implemented in another week and some projects have had to be postponed without specifying which projects will be affected.
Bosworth also announced that despite the cost reduction, Meta has no plans to lay off any of its employees.
Generally Meta is currently struggling with cost issues as Facebook’s social media app saw a reduction in its active users thus impacting the company’s stock.
In early April alone CEO Mark Zuckerberg announced that Meta had to cut its long -term investments slightly, in addition to lowering its 2022 spending expectations to between $ 87 billion and $ 92 billion.
As a reminder, among Meta’s long -term investments are Reality Labs which operates a virtual reality (VR) business, Oculus includes other VR products such as smart glasses and Cambria headsets.
Since the company's name change to Meta, Zuckerberg has hired 13,000 employees into Reality Labs and in the first quarter of this year that number added another 6,000.
Even so, the metaverse plan is a long -term inspiration and is a big bet, with the Reality Labs unit having lost $ 10.2 billion in 2021 and nearly $ 3 billion in the first quarter of this year alone.
So it’s no surprise that Meta decided to reduce cost allocation to its metaverse units despite still being able to generate growth from Facebook, Instagram and WhatsApp apps to Reality Labs.
