Meta, the social media company, has reported that its metaverse division, the Reality Labs Unit, is shedding lots of money. In its recent earnings call, the company informed that, while the Reality Labs unit managed to pull more than $400 million in sales, its losses reached $2.8 billion, mainly due to research and development costs associated with metaverse and VR products.
Meta’s outlook for Q3 2022 is also negative. The company blamed this prediction on the:
continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.
Mark Zuckerberg, CEO of Meta, also hinted at the possibility of layoffs during the next year, stating that “this is a period that demands more intensity and I expect us to get more done with fewer resources.” The company reported having increased its workforce by 32% since last year, with its headcount reaching 83,553.
What do you think about Meta’s latest earning call and losses via the metaverse business? Tell us in the comments section below.