Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

It is expected to cut 5,000-8,000 people

Musk snapped his fingers on the front foot to kill half of Twitter’s employees, and Zuckerberg on the back foot also raised a machete for mass layoffs.

On November 7, the Wall Street Journal Chinese reported that social media giant Facebook’s parent company Meta plans to start major layoffs this week, which is expected to affect thousands of employees.

If the above plan is true, it will be the first large-scale layoff in Meta’s 18-year history.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

A Meta spokesperson declined to comment on the matter, though he referred to Zuckerberg’s recent statement that “we are focusing our investments in a few high-priority growth areas.” This means that some teams will meaningfully scale up, but most others will stay the same or scale back next year. ”

To put it bluntly, the input of the core business should be retained, and the edge business should be cut and cut.

When the news came out, the melon-eating masses flocked to it, and even some netizens speculated on the direction of Meta’s layoff according to Zuckerberg’s recent statement~

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

According to the netizen’s speculation, Meta will lay off 5,000-8,000 people this time.

01 In one year, $20 billion was burned

As of the end of September this year, Meta had 87,314 employees, a 28% increase from a year ago.

Like other tech giants, Meta has been expanding wildly, adding more than 27,000 employees in 2020 and 2021, and 15,344 in the first nine months of this year.

In just a few months, why did Meta go from crazy expansion to large-scale layoffs? Just look at the company’s performance.

In the third quarter of this year, Meta’s revenue was $27.7 billion, down nearly 4% year-on-year, and its performance fell for two consecutive quarters, and net profit in the third quarter was $4.4 billion, down 52% year-on-year, and fell for four consecutive quarters.

The decline in revenue was primarily due to a significant reduction in customer digital ad spend.

As a result of Apple’s updated privacy policy, the return on advertising on Meta has also dropped significantly, which is expected to cost Meta as much as $10 billion in advertising revenue per year.

The sharp decline in net profit is due to the sharp increase in the losses of the Metaverse business, which has been given high hopes. From a loss of $260 million in the same period last year, it expanded to a loss of $3.7 billion in the third quarter of this year.

According to statistics, since the beginning of last year, the business has caused Meta to lose nearly $20 billion.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

What is the concept of $20 billion?

As of today’s close, the market value of BilibIli is 4.655 billion US dollars, and the 4 together are only 18.62 billion US dollars.

The official website of the iPhone 14 Pro Max 1T version is priced at 13,499 yuan, and at today’s exchange rate of $20 billion, it can buy 10.75 million units, and can give one to everyone in Changsha.

In addition, Meta is currently facing a slowdown in global economic growth, competition from TikTok, and the ubiquitous regulatory threat, and its share price has fallen by more than 70% this year.

According to the Bloomberg Billionaires Index, Zuckerberg, 38, now has a net worth of $37.7 billion. That’s more than $100 billion off from $142 billion 13 months ago.

In other words, Zuckerberg spent 13 months burning 73% of his net worth.

And even more frightening than the stock price crash, the huge losses of the Metaverse business have led to a sharp rise in Meta expenses, and the company’s free cash flow has fallen by 98% in the latest quarter.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

Faced with this situation, Meta shareholders can’t sit still. In October, its long-term shareholder, Altimeter Capital, wrote an open letter to Meta’s board of directors.

It is recommended that companies limit spending on Metaverse projects to no more than $5 billion per year, while cutting employee expenses by 20% to regain their attractiveness to investors.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

At present, the layoffs are about to be realized, and plans to limit Metaverse investment may already be on the way.

02 How hot was the Metaverse last year?

Who would have thought that the Metaverse, which was at the top of the wind a year ago, has now become a passing concept.

On October 28, 2021, Zuckerberg announced that the company will change its name to Meta to demonstrate its determination to enter the Metaverse industry. This news completely detonated the market.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

Overseas, giants such as Apple, Microsoft, Google, Amazon, and Disney have entered the market; In China, Tencent, Netease, ByteDance and other Internet giants have also increased their layout of the Metaverse according to their respective advantages and understanding of the Metaverse.

Major securities firms are also vying to embrace the Metaverse, not only the Metaverse research team is rapidly being formed, but also the chief analysts of the Metaverse have been born. In the second half of 2021, hundreds of special research reports on the Metaverse were disclosed in just half a year.

It can be said that under the leadership of Zuckerberg and Meta, large factories and small factories around the world are following to throw money into the Metaverse.

According to McKinsey calculations, since 2021, the world has invested a staggering figure in the virtual world – $177 billion.

The Metaverse concept has also become a hot fried chicken in the A-share market, and in November 2021 alone, the Metaverse index rose by about 15%.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

Among them, Chinese Online rose by 19.99% on December 8 last year; Zhongqingbao, the leader of concept stocks, has more than quadrupled its share price in just two months.

Even in January 2022, the first fund to publicly increase its position in the “Metaverse” appeared. The term “Metaverse” has been selected into various versions of the “2021 Internet Buzzword”.

In just one year, the Metaverse has cooled like this, what is the reason?

03 The Metaverse has the possibility to take off, but not now

Before touching the relevant devices, the Metaverse that everyone imagines can allow us to experience a complete and real virtual world like the protagonist of “Ready Player One”.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

But the truth is eye-popping.

First of all, in terms of applications, the current Metaverse is far from being called a “universe”.

In August this year, Zuckerberg uploaded a screenshot of his avatar in Horizon Worlds on social media to celebrate the launch of the platform in France and Spain.

In this screenshot, Zuckerberg’s avatar stands dumbly and numbly in a deserted landscape, with a miniature version of the Eiffel Tower behind him and the Sagrada Familia in Barcelona like sand.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

Such a bad picture has attracted group ridicule from netizens, and everyone cannot understand that Meta’s project after burning nearly 20 billion US dollars, the picture quality is the same as the PC game of the 90s.

Such a rough “universe”, so that at present, after everyone gets the VR equipment, the most played is actually a small game “Rhythm Lightsaber”, which is equivalent to the 3D version of “Fruit Ninja”.

Secondly, a senior VR player in the company complained that when you play “Rhythm Lightsaber”, you must pay attention to the action should not be too large, otherwise there is a possibility of light leakage.

This kind of back and forth switching between the real and virtual worlds, the experience is really not very good.

Is the Metaverse cold? Meta laid off a big layoff, burning enough money to buy 4 B stations

Finally, the most important reason why the Metaverse is cool is still not profitable.

Over the years, a hot concept has emerged every year or two. The blockchain in 2018 and artificial meat in 2020 were once the “pigs” at the top of the outlet, but they were also cool.

As a concept that does not make money, it is normal for the Metaverse to be cold.

Perhaps in the future, the Metaverse will take off one day, but now it seems that Meta is still a little too far ahead.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/is-the-metaverse-cold-meta-laid-off-a-big-layoff-burning-enough-money-to-buy-4-b-stations/
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