Meta's Metaverse Project will Lose 'Significant' Sums of Money for up to 5 years

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Meta's Metaverse Project will Lose 'Significant' Sums of Money for up to 5 years
27 May 2022
5 min read

News Synopsis

According to Bloomberg, CEO Mark Zuckerberg told shareholders on Wednesday that Meta's metaverse project will lose "significant" money over the next three to five years. At Facebook's annual meeting on Wednesday, he responded to a shareholder's question about return on investment. According to Meta's board, many of its products for an "embodied internet," in which users are immersed in a virtual world, are unlikely to be viable for 10 to 15 years.

"We want to make hardware as affordable as possible for everyone while also ensuring the digital economy grows," Zuckerberg told shareholders, according to Bloomberg. Meta spent $10 billion designing its metaverse in 2021 alone. It currently has 10,000 employees working on Zuckerberg's vision and plans to hire an additional 10,000.

Those plans, however, are likely to be put on hold after Meta implemented a hiring freeze in early May in anticipation of an economic slowdown. The metaverse would eventually generate revenue by serving as a marketplace for creators and businesses to sell virtual goods and services.Twelve shareholder proposals were rejected at the meeting on Wednesday. Zuckerberg still owns a majority stake in Meta.

 

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