We’ve known that for a few months now other way around gives Meta a headache. Not only has the company lost many billions of dollars, but it has also suffered a serious stock market slump. Above 70 percent the Meta share is already lost within a year. And now this decline is having its first consequences. Mark Zuckerberg is now resigning more than 11,000 employees at Meta – almost 13 percent of all employees.
Message to Meta employees
Facebook creator Mark Zuckerberg has spoken personally about the layoffs of his meta employees: “Today I’m sharing with you one of the biggest changes we’ve ever made in meta history. I’ve decided to reduce the size of our team by about 13%. […] We are also taking further steps to become a leaner and more efficient company […] I take responsibility for those decisions and for why we ended up here.”
Further in the news, the Meta boss explains that the increase in sales at the start of the pandemic has led to investment. Like other experts, he assumed that this upswing would continue into the future. However, that was not the case. The Metaverse in particular is an area where Zuckerberg has invested a lot of money. This year alone, the Reality Labs have $9.4 billion lost. And even that Collaborator are not thrilled with the Metaverse.
Implications for Meta’s VR business?
Despite the extreme losses to the Metaverse business right now no consequences expected for the VR department at Meta. Also in October, several new products were presented at the Meta Connect event. Including that one Find Pro, which has recently become available. The layoffs caused a small uptick in stock markets. The stock is up just over 4 percent.