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    Meta continues to burn through cash for its flailing metaverse and VR project, which lost $3.7 billion in the 3rd quarter

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    • Meta’s Reality Labs division posted a loss of $3.7 billion in the third quarter.
    • Meta’s recent earningsAn article posted Wednesday shows that the push for VR and the Metaverse is still bleeding money.

    mark zuckerberg’s The Metaverse’s big gamble has yet to pay off.

    According to Meta’s third-quarter earnings report released Wednesday, Reality Labs lost $3.7 billion, the same amount as last quarter.

    Reality Labs is responsible for: Meta VR And metaverse push. Significant unprofitability continues. Despite draining $11.5 billion from his company this year alone, Zuckerberg is still plowing money into mixed reality bets.

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    Meta’s CFO Susan Lee said in an earnings call with investors Wednesday that Reality Labs’ revenue fell 26% to $210 million, leading to a decline in Q3 Quest 2 VR heads. He said that sales of sets have decreased.

    meta The company said in a report that it expects Reality Labs’ operating losses to “increase significantly” going forward.

    Zuckerberg told investors that apart from AI, metaverse Another “long-term focus”. During a conference call with investors, Meta’s CEO and CFO mentioned AI a total of 47 times, but only mentioned the word “Metaverse” three times.

    Zuckerberg seems to be observing patiently. Will Reality Labs be profitable?. At last year’s shareholder meeting, he said the company would lose a “substantial amount” of cash over three to five years. The CEO does not seem to have much confidence that the company’s reward will be worth the risk, as he said at the company’s second-quarter earnings conference in July, “I can’t guarantee that this bet is correct.” .

    Despite years of investment in Metaverse, the company laid off some employees who worked in its Reality Labs division earlier this month. Reuters report.

    According to Reuters, citing two people with knowledge of the plan, employees were told in a post on the company’s Workplace forum that they would be notified on October 4 if they were fired. It is said that It did not say how many people in the department were affected by the incident. dismissal.

    In February, Meta’s CFO said Reality Labs would be included. “Year of Efficiency” We plan to improve our financial performance. In March, the company announced that it would cut 10,000 jobs. The company also reduced the health benefits it offered employees from $3,000 in 2022 to $2,000 this year, Insider previously reported.

    Mehta did not immediately respond to Insider’s request for comment outside of normal business hours.

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