Mark Zuckerberg optimistic despite multi-billion Metaverse loss
The losses of Meta's Reality Labs division rose significantly last year.
The losses of Meta's Reality Labs division jumped significantly last year. This comes from the company's earnings report. Mark Zuckerberg, however, is optimistic: 2023 should be the "Year of Efficiency."
According to the report, Reality Labs posted a loss of $13.7 billion in 2022, up from $10.2 billion the year prior. "At Reality Labs, we expect our losses for the full year in 2023 to rise," said Susan Li, Meta's CFO. However, due to long-term opportunities, the team will continue making meaningful investments in this area.
CEO Mark Zuckerberg is also optimistic despite the big loss. In a press release he says: "Our management theme for 2023 is the 'Year of Efficiency,' and we are focused on becoming a stronger and more agile organization." Whether the Metaverse flagship project "Horizon Worlds" will be successful in 2023 remains to be seen. So far, interest has been limited.
After a weak third quarter, Meta had to trim staff: 11,000 employees were laid off. The crypto sector was also hit by large waves of layoffs during this period. Meta's (META) total revenue in Q4 2022 was around $32.17 billion, which was better than the initial projections.
Meta's (META) stock rose a solid 20% in afternoon trading. The announced $40 billion stock buyback could have boosted the price.
