Such boasting about the metaverse and the Reality Labs division was nowhere to be found during Wednesday's discussion of the year ahead. "I think people are going to look back decades from now and talk about the importance of the work that was done here," Zuckerberg said last fall. David Wehner, the then-CFO who is now the chief strategy officer, said spending on the Reality Labs division would increase "significantly" in 2023. Zuckerberg has said several times over the past year that spending on the metaverse was about fortifying the future of Meta, formerly known as Facebook, as well as the "future of the internet," and that building the metaverse would prove historic.Īnd in October, Zuckerberg struck a defiant tone on spending - particularly on the metaverse - while discussing third-quarter earnings. The company is cutting at least $1 billion out of its planned capital expenses for the year, too, saying $30 to $33 billion would be spent, down from a prior range of $34 to $37 billion. Susan Li, Meta's new chief financial officer, said on the call that losses from Reality Labs will "continue" in 2023 because it is a "long-duration investment." Still, Reality Labs would be subject to the same push for efficiency as other parts of the company, Zuckerberg said. "That was honestly a little surprising to me - that as we started digging into this, the company felt better to me." "By reducing layers of management, it's made information flow through the company better, and it will help us make better products and attract and retain better people," Zuckerberg said on the call. ![]() He added that last year's layoffs and an ongoing reorganization "surprised" him as they not only cut costs, but also improved communication and progress on future products. Meta will focus on " efficiency" going forward, Zuckerberg said on a call with Wall Street analysts discussing its fourth-quarter financial results. ![]() The Reality Labs division, tasked with building the metaverse, lost $13.7 billion this year, according to Wednesday's disclosure. In a few months' time, Meta CEO Mark Zuckerberg has gone from pushing the metaverse as the future of his company to it being just another long-term project. “Our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization,” Zuckerberg said.Account icon An icon in the shape of a person's head and shoulders. Meta has also downsized its staff by a hefty 13%, though this most recent quarter doesn’t factor in those 11,000 jobs that the company cut in November. “But my main focus is on increasing the efficiency of how we execute our top priorities.” “We’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial,” Zuckerberg said in the earnings call. Meta took a notable beating in 2022’s market turndown, losing as much as 60% of its value over the course of the year. Those gains combined with Meta’s aggressive cuts and its promise of an efficient 2023 drove stock prices up around 15% in trading after-hours. Facebook’s user numbers also managed to inch up in the last quarter with the platform hitting 1.98 billion daily active users and 2.96 billion monthly active users as of September 2022. ![]() The company beat revenue expectations in the final quarter of 2022, bringing in $32.2 billion. In its Q4 earnings call on Wednesday, Meta CEO Mark Zuckerberg described the company’s near future priorities and plans, painting a picture of a tech giant that’s driving toward leaning down and speeding up. Meta is all-in on becoming a lean, mean, cash-printing machine.
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