The company’s main strategy to deal with slow revenue growth and possible future losses, in particular, is temporarily reduce or pause the hiring of new talent “medium and higher level”, as well as the hiring of “initial level” engineers, according to the aforementioned media. A spokesman for Meta has confirmed the facts claiming that the firm is “slowing growth” after evaluating the expense forecast for the current earnings period.
Meta has no choice but to hit the brakes on the development of her metaverse
This forecast of expenses, in addition, comes at a time when Meta (Facebook) is focusing practically all its efforts on the creation of the metaverse. In fact, the division focused on virtual reality —and therefore, on the metaverse— does nothing but lose millions due to its constant (and probably expensive) development. Financial results related to the first quarter of the year reflected that Reality Labs lost 2,960 million dollarss compared to the same period of the previous year. However, until now it had not been an impediment to continue investing money in this area.
The new forecasts, therefore, make progress in the creation of the metaverse much more difficult. Mainly, pbecause pausing hiring means limiting the number of employees focused on developing that virtual world. Meta even assured that it would create 10,000 additional jobs in Europe for the creation of the metaverse. But taking into account the previously mentioned plans, it is clear that now the objective is to hit the brakes.