Despite the fact that operational difficulties for Meta’s Reality Labs business peaked in 2022, the company’s founder and CEO, Mark Zuckerberg, asserts that the company has no plans to alter its projected metaverse plan. Mark Zuckerberg, CEO of Meta, has recently spent months supporting the metaverse because of his company’s long-term growth strategy. The division that builds metaverses, Reality Labs experienced its greatest annual losses to date.
The unit according to a report made on Wednesday incurred losses projected at $13.7 billion this year. The metaverse-building division lost around $4.3 billion during the fourth quarter, which also marked the division’s worst quarterly deficit since the company’s financials had first been made public.
Meta’s Long-Term Plan
Amidst the huge losses, Mark Zuckerberg, has maintained the business’ long-term goal by saying that it is consistent in its metaverse vision and that it does not intend to change its plan. Zuckerberg added that none of the signs they had seen would suggest that it was critically necessary to change the division’s strategy in the long run.
According to Susan Li, Chief Financial Officer (CFO) of Meta, losses projected by Reality Labs operations will continue in 2023 since it is a long-term investment. According to her, the division expects an even tougher financial year in 2023 given the Long-term prospects the company sees in continuing to spend reasonably in Metaverse. The downsizing that began last year and is still going on, according to Mark Zuckerberg, has reduced costs while enhancing communication and enabling the creation of new products.
Meta has significantly cut its personnel by nearly 13%. The 11,000 staff members that the business cut in November are not taken into account for the latest quarter. Nevertheless, Meta outperformed expectations by bringing in $32.2 billion in sales during the final quarter of 2022. Additionally, Facebook recorded 2.96 million active monthly users as of September 2022, as well as 2 billion active daily users, both of which were marginally up from the preceding quarter.
Zuckerberg promised that Reality Labs would become more effective, as with other divisions of the business. In other terms, Meta would change to a new type of data central server that would serve as the foundation for all of its many artificial intelligence initiatives and be more cost-effective. He added that perhaps the business would release yet another next generation consumer headset later on during the year. This comes after the launching of the Quest Pro Virtual Reality (VR) headset in October by the company.