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Meta cuts some virtual universe projects

Meta says its metaverse Reality Labs business is cutting some projects, a sign that its virtual universe ambitions are in trouble.

According to Reutersin an internal meeting on May 10, Chief Technology Officer Meta Andrew Bosworth told Reality Labs staff that the projects being worked on by the division “will have significant tweaking”. Details of the change will be announced within the next week.

Mark Zuckerberg's legless avatar in the metaverse.  Photo: Meta

Mark Zuckerberg’s legless avatar in the metaverse. Image: Meta

A day later, a spokesperson for Meta confirmed that what Bosworth said was correct. This person said some Reality Labs projects were postponed, while others were canceled entirely, but did not provide details.

The company will not lay off any employees in RealityLabs, but the hiring of new employees will be limited. This policy is also being applied to all other departments. Show Meta “freeze“Recruiting at scale after a period of dismal business.

Reality Labs is a division dedicated to developing AR/VR technologies and devices to serve ambitions metaverse by CEO Mark Zuckerberg. Last year, the division had sales of $2.3 billion, but a loss of $10.2 billion. The financial report for the first quarter of 2022 also shows that Reality Labs continues bear loss $2.96 billion.

Zuckerberg thinks the loss billions of dollars is part of the plan. “While focusing on the biggest opportunity and challenge ahead, I think it’s important that Meta needs to build a new foundation for the next era of social technology,” the US billionaire said at the meeting today. April 28. “Everything is just laid out now. What I’m looking forward to is 2030. It’s going to be a really exciting year.”

Reality Labs is implementing Horizon Worlds – the virtual world that is at the heart of Meta’s metaverse strategy. During the tests since the end of 2021, the platform received good feedback. As of mid-February, there were 300,000 users the first time after three months on the market.

Mark Zuckerberg changed the company’s name from Facebook to Meta from October 2021. During a meeting with investors in January, he said the company’s new VR headset will be released later this year at a high price, and revealed that it will continue to increase spending on Reality Labs in the coming years.

Bao Lam

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