Facebook parent company Meta Platforms Inc has confirmed cutting 11,000 jobs or 13% of its global workforce as it looks to focus on its core business areas.

Justifying job cuts from metaplatforms

With previous reports pointing to this possibility, the company’s co-founder and CEO, Mark Zuckerberg, confirmed it in a letter sent to all employees as revealed on Tuesday.

According to the letter, Zuckerberg apologized for over-projecting the company’s growth, leading to the hiring of more staff than he could sustain in the near future. Following the firing, he noted that the company will focus on “a smaller number of high-priority growth areas, such as our AI discovery engine, our ads and trading platforms, and our long-term vision for the metaverse.”

The company announced its name change from Facebook Inc to Meta Platforms Inc last year when it revealed plans to pivot into the emerging world of the metaverse. The company has pumped billions of dollars into its metaverse research, as it believes new technology will define the future of social interaction.

Its metaverse engagements have been wildly successful since the company began investing in the space. As reported by Blockchain.News, Meta’s metaverse division posted a $3.7 billion loss in the third quarter (Q3) of this year, a figure that has further highlighted the fragility of the company’s capital.

Impact of the Meta Plan on the Development of the Metaverse

The recorded metaverse loss and fallout bordering on staff layoffs could cause a significant slowdown among Web2 companies looking to venture into the metaverse.

The reason is very simple and is bound to hinge on the fact that if Meta Platforms could take a loss with its massive capitalization, then the discovery of the company is more or less a gamble to be expected.

This development may cause a slowdown in the integration of metaverse solutions, especially with the implosion of the FTX Derivative Exchange still fresh in everyone’s mind.

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