Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees “confused”

The boss is impatient, the employees are confused, no one knows what to do

The company’s internal business chaos and the company’s external look and feel resembled the former Yahoo. These combined with Zuckerberg’s Metaverse force made Meta’s new and old employees complain.

Many Meta employees are now complaining that the boss’s Metaverse project is ignorant of the head, and the company has increased business troubles but has not brought benefits. 

A spokesman for Meta said the company was “going through a defining period for the company and we’re going all out” and that “a lot of people were excited, but they also had a lot of questions at the same time.” 

However, the wording of internal employees and external investors is far less subtle. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Is Meta facing a ‘Yahoo moment’?

Meta is at a dangerous time in its history, as Mark Zuckerberg bet the company’s future on an uncertain Metaverse.

The company’s turmoil has begun to remind some of Yahoo of yesteryear. Yahoo, once the largest internet company, teetered on a similar threat and never recovered. 

“We have reason to wonder if Meta has had its own ‘Yahoo moment,'” said a tech industry veteran who has worked closely with Meta executives. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

It’s possible the social media company will never be as dominant as it has been in the past decade, the person added. 

In the late 1990s and into the 21st century, Yahoo was the go-to site for services like Internet search. As a result, it was crushed by emerging competitors, a slow response to changes in digital advertising, and the advent of Web 2.0. 

Now, Meta is facing its first real challenger, TikTok, disruptive privacy rules in digital advertising, and an explosion of Web3 startups and technologies. Meta’s current situation looks very similar to what Yahoo once was. 

Keith Hwang, chief investment officer at Selcouth Money Management, said the tightening of privacy rules in the advertising industry, the emergence of strong competitors, and shrinking user growth “all make it look like Meta is facing a potential ‘Yahoo moment’.” . 

“The impression is now lingering in investors’ minds, and each of these issues is a huge challenge in itself,” Hwang said. 

Evercore’s top internet analyst Mark Mahaney said in a February 2022 research note that the plunge in Meta’s stock at the beginning of the year did show “a general fear of the company’s long-term fundamental outlook.” “In short, the market is questioning whether this company is now Yahoo 3.0.” 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Insiders are also wondering. The similarity of the Meta and Yahoo journeys was a topic of conversation among colleagues, said a senior Meta employee who recently left. And not just recently, it’s been there for the past few years. 

Another former employee said Meta’s Web3 projects like cryptocurrencies and NFTs looked nothing but “vanity games.”This is creating a general atmosphere within Meta that the company is past its prime, the person said. 

“Meta’s only really valuable project right now is Instagram, and they’re going more and more down the Yahoo path.” 

Domestic and foreign diplomats questioned the Meta Metaverse: money spent, goods have to wait ten years

The various challenges are the key impetus behind Meta’s full turn towards the Metaverse. A former senior employee who recently left said Zuckerberg’s latest decision was motivated by concerns that Meta’s previous “business was leveling off and not growing.”

But now within Meta, employees are concerned that these new decisions won’t lead to better business performance, according to Insider magazine interviews with 10 current and former Meta employees. 

Zuckerberg’s all-out turn could make Meta a major supplier of hardware and software underlying the Metaverse in the future. Right now, though, that’s a distant possibility, and the vision is very expensive. 

In 2021, the company lost $10 billion on the Metaverse. That’s a lot of money, even for one of the world’s premier giants, like Meta. 

Right now, the Metaverse is basically empty, and Zuckerberg himself says it will take at least a decade to fully develop it. 

At various financial conferences and technology conferences in 2021, Zuckerberg himself has repeatedly stated that “I don’t expect Metaverse products to be profitable anytime soon.” “We expect to invest billions of dollars over the next few years before the Metaverse reaches profitable scale.” 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

A senior person in the industry said: “Meta has the courage, funds, and ability to finally do a good job in the Metaverse and become a new benchmark in the industry. But they can’t afford to make mistakes.” 

But insiders and outside investors are concerned that Zuckerberg’s Metaverse bet may well be wrong amid the daunting challenges. 

So far, the Metaverse project has spent a lot of money with little to show, according to another recently departed Meta employee. 

The person said: “Compared to the current hype on the Metaverse, Meta’s current Metaverse product development is far from satisfying its own bragging rights. 

Meta’s Metaverse project still has nothing to touch, or see, let alone actually use. ” 

Another former Meta employee said: “Zuckerberg is betting his entire family on a market segment he doesn’t own.” 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Christie Nordhielm, a professor specializing in marketing at Georgetown University, said: “Meta is five minutes old in the public perception. In the field of online technology, the sense of the spot on the cultural identity is more important than anything else. 

And now Meta is known to the public as the former internet celebrity who felt compelled to tell people “I’m actually cool” at a carnival party. ” 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Ygal Arounian, managing director of Wedbush Securities, also said: “It is uncertain whether Meta will succeed in the Metaverse. It is still strong and dominant in the market, but that does not mean that it will be so forever.” 

The boss is impatient, the employees are confused, no one knows what to do

These people also said that since Facebook changed its company name to Meta in October 2021, employees in the cash flow divisions of Meta companies such as Facebook, Instagram, WhatsApp, and advertising have also positioned their future jobs with I am confused about the direction of my current efforts.

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

According to a recently departed Meta director-level former employee, Meta is now “desperately promoting the vision of the Metaverse” within the company, which is “the only thing Zuckerberg wants to talk about.” 

Despite the enthusiasm, the boss’s impatience was not immediately translated by executives into job functions for most employees. 

Meta’s commerce team, a popular division of the company, has been particularly explicit in telling its employees that it doesn’t plan to invest in any Metaverse projects until at least 2023. 

“Without a coherent business strategy, colleagues really don’t know what to do and what progress to deliver,” said one current Meta employee. “It’s basically inciting disorder and anxiety.” 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Meta is trying to change that by creating a senior in-company PR team to better spread the word about its metadata ambitions internally. 

The former employees who left said the company was “forming a dedicated metaspace team,” with a team leader that would cover all groups within the company. Its mission is to let employees know that “there is an executive manual for the Metaverse project” at the top, even if it doesn’t actually exist. 

A Meta spokesperson denied the claims, but acknowledged that Vishal Shah, vice president in charge of the Metaverse, was indeed “communicating a broader vision with all leaders within the company.” 

This is textbook recognition in disguise. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

The Metaverse is so clearly Zuckerberg’s focus, said former director-level employees, that he is said to be checking out all of the new product demos with Andrew Bosworth, the new chief technology officer in charge of the “virtual reality lab,” and reviewing the “virtual reality lab” for himself. All collaborations and ideas from The Reality Lab. 

“If the Metaverse was where Zuckerberg had his eyes on the future of the company, he wouldn’t have ceded the details to someone else, even the titular project leader,” the former employee said. 

Meta employees are less than half confident in Zuckerberg

Loss of confidence among internal staff, which has been there since the name change to Meta.

Respondents to the November 2021 employee survey had overwhelmingly positive ratings for their direct business leaders, including “employee management” (84% positive), “work collaboration” (83% positive) and ” Team Impact” (85% positive) and other categories. 

However, in terms of views on the company’s future and senior leaders, Meta employees’ ratings plummeted: 65% had a positive view of the company’s future, while only 49% had confidence in senior leaders. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

The combination of the two means that only 51% of the respondents choose the option “optimistic about the company’s future”, 55% of the respondents choose the option “proud of the company”, and those who explicitly choose “will continue to stay in the company” Only 47%. 

To get out of this predicament, Zuckerberg has to remain president

Twists like Meta’s are not new. Amazon, Disney, IBM and Microsoft have all found success in new industries years after their founding, but few companies have made such a drastic turn.

Some industry veterans said that Zuckerberg spent money on the “Metaverse” or “virtual reality lab”, which can actually be interpreted as, “I know these projects are useless at first, but I will continue to explore.” 

“With this social networking technology, you have to invest incrementally to discover what works, and improvements are built on the user experience.” 

Now that Meta has almost unlimited funds, it can naturally not make difficult single choices like in the entrepreneurial stage, and can try to do everything at the same time in multiple fields and multiple projects. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

Although Zuckerberg’s current public relations image is less than positive, he is still widely regarded as a brilliant operator.If Meta is to successfully rebuild its ad business, compete with TikTok, and become a top player in the Metaverse, he needs to stay on as CEO. 

Meta Metaverse is questioned: On average, tens of billions of dollars are burned every year, and Xiao Zha makes employees "confused"

“Zuckerberg has amazing perseverance. He has the mindset of a founder and the authority within the company. He said run, and people don’t jump,” industry veterans said. 

“If they bring in an outsider to take over as CEO, the investors and project managers will drain the company for cash flow. Then Meta will really be the next Yahoo.” 

References

https://www.businessinsider.com/facebook-meta-Metaverse-oculus-ar-vr-cto-andrew-bosworth-connect-2021-10 https://www.businessinsider.com/facebook-yahoo-insiders-comparison- Metaverse-pivot-stock-struggles-2022-4 https://www.businessinsider.com/mark-zuckerberg-Metaverse-obsession-driving-some-employees-nuts-2022-4

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