Meta's Reality Labs division in charge of metaverse development reports an operating loss of over 500 billion yen, but the CEO makes a strong appeal
Meta, which is focusing on Facebook and Instagram operations and metaverse-related development, has announced its financial results for the first quarter of 2023 (January to March). In the report, it is revealed that the Reality Labs division in charge of metaverse development recorded an operating loss of 3,992 million dollars (about 533.4 billion yen).
Meta - Meta Reports First Quarter 2023 Results
When the company name was changed from Facebook to Meta in October 2021, CEO Mark Zuckerberg said, ``We will move from an SNS company to a Metaverse company,'' and showed a stance to focus on the Metaverse. However, Meta dismissed 11,000 people, equivalent to about 13% of all employees, in November 2022. At this time, CEO Zuckerberg acknowledged the failure of the sales strategy, saying, ``Mass dismissal was my responsibility, too optimistic about growth and led to overstaffing.''
Mark Zuckerberg said, ``The mass dismissal of Meta was my responsibility, and I was too optimistic about growth, which led to overstaffing.''-GIGAZINE
by The Crunchies!
After that, Meta announced further staff reductions of over 10,000 in March 2023. In addition, it is reported that the reduction of about 4,000 people will continue to be considered in April 2023.
Report that Meta will cut staff for the third time and dismiss about 4,000 employees - GIGAZINE
Meta announced its financial results for the first quarter of 2023 on April 26, 2023, amid ongoing large-scale staff reductions aimed at improving operational efficiency. The financial report reveals that the Reality Labs division, which is responsible for Metaverse-related development, recorded an operating loss of $3.992 billion (about 533.4 billion yen), which was recorded in the first quarter of 2022. You can see that following the operating loss of the dollar (about 395.2 billion yen), we continue to post a large operating loss.
On the other hand, Facebook's daily active users increased by 4% compared to 2022, reaching an average of 2.04 billion. Zuckerberg said, 'This quarter has been strong, and the momentum of Meta's products and business is increasing. Our community has reached the milestone of 'over 3 billion people using at least one app every day. We have reached,' and appealed for good performance. Furthermore, regarding the Metaverse-related business, he said, ``Metaverse is a long-term project, and we are continuing our efforts related to Metaverse.''
Regarding a series of large-scale layoffs, CEO Zuckerberg said, ``So far, we have experienced two of the three waves of planned staff reductions in the human resources and technical departments.In May 2023, the entire company We plan to carry out the third wave in .The workforce reduction has been a difficult process, but after completion, the environment for employees should stabilize.For the rest of 2023, we will improve the division of labor model and increase productivity. We are planning to focus on providing AI tools that can be used to improve customer satisfaction and eliminating unnecessary internal processes.'
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