Meta said in its third-quarter report that its metaverse division, Reality Labs, lost $3.7 billion.
With these results, Reality Labs’ loss during the year reached $9.4 billion.
Metaverse Department in Loss
Meta noted that they do not think Reality Labs’ losses will increase by a large amount next year.
The company reported that Reality Labs earned $285 million in revenue. Earnings in the same quarter of last year were $228 million.
While Meta was at a loss with Reality Labs, it continued to generate large amounts of revenue with Facebook and Instagram.
Despite this, the company continues to prioritize the metaverse space.
The CEO of meta shareholder Altimeter Capital Management suggested in a blog post that the company is cutting its budget for the metaverse and reducing its workforce by at least 20% by limiting Reality Labs spending to no more than $5 billion a year.
The company’s CEO, Mark Zuckerberg, announced that he was freezing hiring to cut costs.
Zuckerberg continues his plan to create a metaverse where people can work, play and socialize amid economic hardship.
Some analysts predict that the metaverse industry will be worth trillions of dollars in the future.
