“Metaverse Likely To Suffer Further Losses In 2023”, Claims Meta’s CEO And CFO

Metaverse News

CEO of Meta Doubts Metaverse’s Progressive Future In 2023

The entity behind the world’s over-populated and vastly used social media platforms, Meta, is concerned about Metaverse’s progression in the preceding year.

This concern has been growing upon Meta since the company disclosed 2022’s Q4 report which showed a small percentage of profits.

However, Meta was expecting the profits to be bigger which, according to its report, turned out to be less than expected. The company is now expecting further cutting down of profits in 2023.

It goes to show that the company has been facing major losses when it comes to making huge investments in metaverse technology.

According to Meta’s Q4 report, the company collected revenues exceeding $32.17 Billion in 2022.

Originally, Meta was expecting the figures to be around $31.5 Billion. The results enlightened a little hope among the investors of Meta.

Meta Announced Theme For 2023

It may be noted that Meta was less criticized when it changed the name of ‘Facebook’ into ‘Meta’. This means that the users and shareholders were hoping that the company would make a huge difference in the metaverse.

They wanted the company to explore other technologies and it was realized that the metaverse would be the best choice for Meta to enter.

However, the company received heavy criticism when it made a shift from its usual business model and then adopting the ‘metaverse’ model.

When Meta shifted its entire focus to Metaverse, the former incurred heavy losses stemming from the Research and Development (R&D) sector.

The company is now focusing on coming out of R&D losses and has developed a fresh theme called “2023 – A Year of Efficiency”.

Flattened Organization Structure Much Need

The inventor of Facebook, Mark Zuckerberg, CEO of Meta, was of the view that the organization’s expanded structure would need to be flattened a bit.

He pointed out that the flattening is mainly required to be carried out in middle management.

Zuckerberg insisted that flattening of Meta’s existing expanded structure would help the management in taking and implementing decisions fast.

He further opined that the organization would ensure the integration of advanced AI tools and provide them to its engineers.

He explained that with such tools, Meta’s engineers would be able to improve their productivity in designing innovative products.

Zuckerberg also stated that the organization would ensure timely departure from the projects which are underperforming or unable to provide benefits.

He said that his company would only be focusing on crucial projects which are primarily result-oriented only.

Metaverse Still The Top Most Priority

It is on record that Meta incurred losses to the tune of $14 Billion in 2022 at the hands of its metaverse entity, Reality Labs.

At that time, financial experts had thought that Meta would take a step back in Metaverse after incurring a heavy loss.

Yet, Zuckerberg has himself re-affirmed at several occasions that his organization’s long-term topmost priority remains the same i.e. Metaverse.

He also said that currently his company’s entire focus is drawn toward Artificial Intelligence (AI) technology.

On the other hand, Susan Li, Meta’s Chief Financial Officer, also hinted that the company would likely to make waste further money.

Li predicted that further loss is expected to be incurred again from Reality Labs within this year.

What Is Meta?

Meta is currently the world’s biggest social media company which has within its ecosystem enormously used social media networks.

For instance, Meta is the parent company that owns, runs, and operates social media platforms such as Facebook, WhatsApp as well as Instagram.

All these three social media platforms are hugely popular and used by users in every part of the world. They could easily be regarded as the biggest global apps.

One cannot even imagine the exact number of users of these apps because they are constantly growing in every second.

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