Zuckerberg said Wednesday that layoffs of 11,000 staff, or 13% of Meta’s workforce, will affect “every organization” across two divisions, Family of Apps and Reality Labs. The latter includes VR and metaverse projects.
In addition to the layoffs, Zuckerberg said Meta is cutting discretionary spending and extending a hiring freeze through the first quarter of 2023. He said it has already cut budgets, reduced employee perks and cut real estate budgets.
“Basically, we are making all these changes for two reasons: our revenue outlook is lower than we expected earlier this year, and we are operating efficiently across both our app family and Reality Labs. because I want to make sure he wrote.
Meta’s third-quarter net profit fell 52% $4.4 billion year-over-year, operating margin declined from 36% to 20%.
From the beginning of 2019 to September 30th of this year, Meta invests $36 billion in Reality Labs, according to an insider analysis of the financial statements. Zuckerberg said Wednesday that the Metaverse has shifted resources to “a smaller number of high-priority growth areas,” including a “long-term vision for the Metaverse.”
According to Meta, more than 10,000 people were working on the Metaverse project as of April, more than a tenth of its total workforce.
Reality Labs reports massive losses crushing company profits. In the first nine months of 2022, the division spent his $10.8 billion, but made just $1.4 billion in revenue, leading to huge operating losses. “In 2023, he continues to expect Reality Labs’ operating loss to increase significantly year-on-year,” Meta said. SEC filing on wednesday.
“I am currently in the process of overhauling our infrastructure spending,” Zuckerberg said. Our infrastructure will continue to be a key advantage for Meta, and we believe we can achieve this while keeping our expenses low.”
Do you work for Meta, Inc.? Or were you affected by layoffs? Email this reporter at firstname.lastname@example.org.