The company anticipates further operating losses from Reality Labs. In addition to financial struggles, the division faced layoffs earlier this month. Despite these challenges, Zuckerberg remains patient, acknowledging the potential for significant cash loss over the next three to five years. The company also announced a cutback on employee benefits and a plan to improve financial performance, which includes cutting 10,000 jobs.
Key takeaways:
- Meta's Reality Labs division, responsible for its VR and metaverse push, lost $3.7 billion in the third quarter, marking a 26% decrease in revenue.
- Despite the losses, Meta's CEO Mark Zuckerberg stated that the metaverse remains a "major long-term focus" for the company.
- Meta expects its Reality Labs operating losses to "increase meaningfully" going forward, according to the company's third-quarter earnings report.
- Earlier this month, Meta laid off some employees from the Reality Labs division as part of its "year of efficiency" plans to improve financial performance.