Meta Platforms has reportedly ended its Portal smart display and smartwatch projects as it focuses on core businesses after job cuts.
According to published reports, company officials announced the end of that part of Meta’s business on Friday (Nov. 11), two days after the internet giant laid off employees. 11,000.
Meta has looked to cut its costs as it continues to focus on its metaverse operations. CEO Mark Zuckerberg acknowledged last week that the company had misjudged eCommerce spending levels, assuming they would continue at the same pace as during the pandemic.
“Unfortunately, this did not play out the way I expected,” he told employees in a memo announcing the layoffs.
“Not only has online sales returned to previous trends, but the macroeconomic downturn, increased competition, and advertising restrictions have reduced our revenue more than I expected. I made a mistake, and I take responsibility for it.
Last week also saw Meta sell software company Audio Analytic, which makes artificial intelligence (AI) voice recognition software, as part of Zuckerberg’s continued push – and splitting – metaverse ambitions.
As PYMNTS recently noted, stakeholders have expressed frustration that Zuckerberg has done little to ease their concerns about the money-losing metaverse efforts.
Zuckerberg doubled down on the project during the company’s earnings call last month, telling investors the metaverse will not only continue but also expand, despite its reality. Labs on track to lose $12 billion to $15 billion this year.
That statement led to a 24% drop in the company’s business and increased its annual decline to more than 70%. Zuckerberg, meanwhile, has been called “tone-deaf” by “despised” investors.
“Despite not doing anything other than some expensive headsets and models and the Horizon Worlds virtual reality (VR) platform installed in low-resolution graphics, there is nothing else to show for his investment and the new promotion of the company from Facebook,” PYMNTS wrote earlier this month.
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