Several tech giants, including Amazon, Alphabet, Microsoft, Zoom, and Meta, have reduced their workforce due to concerns about an economic slowdown, with the pandemic cited as contributing to these layoffs. However, it is unclear if the pandemic is the sole cause. We discussed Google in our previous article, and today we’ll delve into the layoffs at Meta.
Meta, under the direction of CEO Mark Zuckerberg, has undergone two rounds of layoffs in the past six months as part of the “Year of Efficiency” initiative, resulting in the loss of jobs for over 26,000 employees or nearly 30% of its workforce.
Mark Zuckerberg revealed in October 2021 that Facebook’s name would be changed to Meta, reflecting the company’s increasing emphasis on developing the metaverse instead of following the trend of artificial intelligence innovation like other tech companies.
Meta invested billions in building an immersive virtual universe to achieve an outcome similar to the fictional time machine featured in the movie “Napoleon Dynamite.” According to a report by Verge, although Meta has sold 20 million virtual reality headsets, they have faced challenges in retaining users and keeping them engaged.
The metaverse project has resulted in significant financial losses for the company, with Reality Labs, the division responsible for the project, recording a cumulative loss of $24 billion over the past two years, including a loss of $13.7 billion in 2022.
Zuckerberg has quietly put the metaverse project on the back burner. Meta will still work on parts of the metaverse, like VR headsets, but it will be mainly for niche audiences like gamers and the crypto world. CEO Mark Zuckerberg declared his aim for the company to “become a leader in generative AI” for Facebook and Instagram advertisers to improve ad targeting and performance. Generative AI refers to algorithms (such as ChatGPT) capable of producing novel content across various media, including audio, code, images, text, simulations, and videos. The technology will help advertisers save time and cost by suggesting tools and creating multiple images for different audiences.
It remains to be seen if this new venture will be successful and secure the company’s and its employees’ future.
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