Meta Plans Large-Scale Layoffs as Metaverse Interest Declines

Meta's Hiring Limitation Followed by Layoffs
Target Not Achieved

According to reports, social networking and technology behemoth Meta is preparing for massive layoffs this week due to mounting costs and a dramatic decline in its stock price. The anticipated cutbacks might affect thousands of workers across Meta's 87,000-strong staff, according to a Wall Street Journal (WSJ) story from November 6 that cited people with knowledge of the situation.

Meta's Hiring Limitation Followed by Layoffs

Meta put a hiring limitation in place in September, and these layoffs occurred two months later. The company had stated that personnel reductions would help them cut expenses by 10%.

Meta is not the only company to go through with such wide-scale layoffs. Web3 companies like Bitmex, Dapper Labs, and Mythical Games all laid off their employees in the initial week of November. In a challenging economic climate, several other IT companies have reduced employment.

Target Not Achieved

After intensifying its efforts to promote the metaverse starting in October 2021, Meta has failed to see success with its commercial plan. Reality Labs, the metaverse division of Meta, lost $3.7 billion in the Q3 of this year, bringing its loss to $9.4 billion.

The corporation, according to WSJ, has not met its target for the number of users for its main Horizon Worlds effort.

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Meta Plans Large-Scale Layoffs as Metaverse Interest Declines

Gungun Bhatia

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.