Meta’s Metaverse Disaster: Thousands Fired, Projects Abandoned. But “It’s Still the Future”?

Meta CEO Mark Zuckerberg and head of global affairs Nick Clegg exploring the metaverse.
  • Meta’s head of global affairs claimed Metaverse is the future during a press conference. 
  • The executive believes Meta could capitalize on its metaverse investment if it focuses on two things. 

Meta, formerly known as Facebook, struggled in its transition to the metaverse despite the concept inspiring its new name. The company has incurred three consecutive quarters of revenue losses and its stock experienced its worst year to date, pushing Meta to pursue other ventures.

In its pursuit, the company shifted its focus from the metaverse to artificial intelligence. The pivot led to Meta laying off thousands of its employees and shuttering many projects, including Instagram and Facebook NFTs

While it seemed Meta was done with the virtual world, the company has yet to close the books on its $24 billion worth metaverse chapter.

Not Done Yet

Meta’s head of global affairs, Nick Clegg, held a press conference in the company’s virtual space, Horizon Workrooms on Wednesday, March 29. Clegg, tuning in from London, discussed plans for the metaverse to select reporters wearing the company’s VR headsets in Washington.

The press conference comes after CEO Mark Zuckerberg announced plans for restructuring amid economic struggles. Meta laid off 10,000 employees, discontinued projects such as Instagram and Facebook NFTs, and closed down its metaverse division, Reality Labs. 

However, despite the firm’s waning interest in the Metaverse, the head of global affairs asserted to the attendees that the future of computing would take place in the metaverse, and it is still sticking with the technology. 

Meta Horizon Work Room.

Meta Horizon Work Room. Source: Meta

Clegg shared

 “We’re going to stick with it [the metaverse] because we really believe, all the early evidence suggests, that something like this will be the heart of the new computing platform. But it’s going to take a while.”

Clegg later reasoned that for Meta to capitalize on its $24 billion investment in the metaverse, it has to prioritize advertising and commerce. This aligns with CEO Mark Zuckerberg’s statement claiming the company could earn billions. However, people have to use the metaverse on a larger scale for it to be viable. 

Meanwhile, distributing user-specific content has historically performed well for Meta’s Facebook and Instagram platforms, generating enormous profits. However, the company has yet to test metaverse advertising.

On The Flipside 

  • Competitor entertainment giant Disney closed its metaverse division after laying off 7,000 employees in March. 
  • Tech company Microsoft shut down its metaverse division after firing 10,000 employees in 2023. 
  • Law firm Cooper & Kirk alleged US federal regulators are engaging in a war against the crypto sector by threatening to debank businesses.


Why You Should Care

Meta is playing a dangerous game with its commitment. The company wants to play all narratives, whether it’s the metaverse or generative AI.  However, the firm’s loose interest in the sector could affect the overall industry. 

Meta Pulls Facebook NFTs:
No More Facebook NFTs? Meta Reveals Creator Support Plans 

Read about the first airline to issue NFT boarding passes: 
Latin American Airline Onboards NFT Ticketing System

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a crypto journalist at DailyCoin who specializes in NFTs, Metaverse, and Web Gaming. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.