Meta has announced it is cutting staff, but has no plans to cut its spending on the metaverse.
According to Business Insider, the company revealed its plans during its third-quarter earnings call.
“We expect hiring to slow dramatically going forward,” CFO David Wehner said. “We are holding some teams flat in terms of headcount, shrinking others, and investing headcount growth only in our highest priorities.”
One of those priorities is clearly continued investment in the metaverse, despite significant losses. The company’s metaverse division, Reality Labs, reported revenue of $285 million for the quarter, just over half compared to the year-ago quarter. Unfortunately for the company, Reality Labs’ losses are just getting started.
“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year,” Wehner said. “Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.”
Zuckerberg & Company clearly believe they are headed in the right direction, even though few others do. Criticism has been mounting with CEOs, tech icons, and investors expressing their belief that Meta is wasting its time and money on what is increasingly looking like a pipe dream.