July 22, 2024 – According to a report by The Information, Meta, the company owned by Mark Zuckerberg, is significantly reducing its investment in the metaverse project. The report cites a former manager from Reality Labs, the department responsible for VR, AR, and the metaverse at Meta, who revealed that the hardware team has been instructed to cut expenditures by nearly 20% from this year until 2026.
The report also mentioned that the department underwent layoffs last year, primarily targeting mid-to-senior level management. Last month, over ten vice presidents and directors were among those let go.
Meta has invested over $40 billion in the metaverse, which has been a key project for Zuckerberg. However, as the company faces economic pressures, Zuckerberg has had to reevaluate this high-risk investment. He has previously stated that the metaverse is a “long-term bet,” but the company needs to improve efficiency and ensure the reasonable allocation of resources.
Meta renamed the company in 2021, signaling its entry into the metaverse sector. But now, faced with real-world challenges, the company has to make adjustments to ensure business stability and profitability.
