LogInDuring the first quarter, Meta's Reality Labs division experienced an operating loss of $3.99 billion, adding to its already staggering loss of $13.72 billion from the previous year.
According to the first-quarter financial results released on Wednesday, Meta is facing ongoing losses from its investments in the metaverse, while simultaneously reducing costs for its social media company.
In its new report, Meta stated that its Reality Labs division, responsible for creating the technologies that will power the virtual and augmented reality experiences of the metaverse, among other things, incurred an operating loss of $3.99 billion.
Despite generating $339 million in revenue during the quarter, the unit's contribution was relatively insignificant for a company that earns tens of billions of dollars each quarter from advertising sales. However, it's worth noting that the operating loss incurred by Reality Labs did decrease from the previous quarter, dropping from $4.28 billion to $3.99 billion, despite generating higher revenue of $727 million in the previous quarter.
In the entire 2022, Reality Labs generated $2.16 billion in sales, but recorded an operating loss of $13.72 billion, indicating that virtual reality and augmented reality technologies have not yet gained widespread popularity.
Mark Zuckerberg has declared 2023 as Meta's "year of efficiency" and has taken significant steps to reduce costs, such as laying off an estimated 21,000 employees.
Despite this downsizing, the company is continuing to invest billions of dollars into the metaverse, a move that began when the company changed its name from Facebook to Meta in late 2021.
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