According to statements made at a recent shareholder meeting, Facebook CEO Mark Zuckerberg’s digital Metaverse will lose a “significant” amount of money in the next three to five years. The announcement comes as Facebook (now known as Meta) faces significant challenges, including a recently announced hiring freeze in some divisions.
Bloomberg said at a recent shareholder meeting that Facebook CEO Mark Zuckerberg plans to invest heavily in the company’s Metaverse, which would mean losing a “significant” amount of money to the project over the next three to five years.
Facebook’s Mark Zuckerberg on Sunglasses (Drew Angerer/Getty)
Zuckerberg said that as people build businesses selling virtual goods and services in an immersive digital world, metadata will eventually become profitable, monetizing the creative economy. “We want to ensure that hardware is as accessible to everyone as possible and that the digital economy grows,” Zuckerberg said.
Zuckerberg added that meanwhile, the company expects to increase revenue from investments in its Reels short video service, which is trying to compete with apps like TikTok.
Breitbart News recently reported that Facebook is reducing investment in some of its products. The company is also enforcing a massive hiring moratorium and reducing hiring targets with a strategy that will affect “almost every team in the company.” It appears to be a continuation of his earlier warning to “expect an outage” to the hardware section.
Due to “slower-than-expected revenue growth,” Facebook has suspended company-wide hiring and has no intention of meeting its hiring targets set earlier in the year. According to the memo, the company’s concerns stem from changes in Apple’s privacy, the war in Ukraine, and the “general macroeconomic environment.”
The company is reportedly no longer taking on certain engineering positions and is starting to put recruits and low-level data scientists to rest. Many employees are starting to fear the impending layoff, but CEO Mark Zuckerberg said at an internal general meeting last week that no layoffs are planned.
“I can’t promise that we won’t have to sit here and rethink when things change,” Zuckerberg said. “But what I can tell you is we don’t expect to do that where we’re sitting right now. Instead, it’s important that we drive growth to levels we think will be manageable over time.”
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Source: Breitbart
