Metaverse Shock to Facebook’s Parent Company Meta: The Disclosed Loss Is Incredible!

Meta, which owns Facebook, reported that Reality Labs, its Metaverse division, lost $3.7 billion in the third quarter of this year.

Meta’s Losses From Metaverse Department Up To $9.4 Billion Annually

This brings Reality Labs’ year-to-date loss to $9.4 billion. Meta said Reality Labs “does not predict” operating losses will increase significantly next year.

Meta said Reality Labs’ earnings fell to $285 million this quarter, from $558 million the previous year.

Apart from Reality Labs, Meta continues to generate strong advertising revenues, primarily through its core businesses, Facebook and Instagram.

Finally, the CEO of Meta shareholder Altimeter Capital Management suggested in a blog post that the company cut its workforce by at least 20% and Reality Labs should reduce investments by limiting spending to no more than $5 billion per year.

Less than a month ago, CEO Mark Zuckerberg told employees that Meta was freezing hiring and restructuring teams to cut costs.

Zuckerberg has been working for over a year to build his vision for the future of Meta and that of the company’s Metaverse universe, an immersive digital space where people can work, play and socialize.

Meta’s leading virtual reality platform is called Horizon Worlds. However, it has been difficult to reach high figures so far. According to a recent report in The Wall Street Journal, less than 200,000 people visit Horizons each month.

To pay in general in the metaverse universe cryptocurrencies used, these universes are also followed by crypto users.

*Not investment advice.