Meta Cuts 10,000 Extra Employees After Scrapping NFT Plans—Is the Metaverse Nonetheless On?

Meta’s workforce ballooned lately because the Fb dad or mum firm signaled its ambitions for the metaverse—however latest strikes counsel that it’s feeling the sting of fixing tech traits and tough market circumstances. The corporate right this moment introduced one other spherical of layoffs, someday after saying that it was “winding down” help for NFTs.

Co-founder and CEO Mark Zuckerberg wrote in a post today that Meta will shed about 10,000 additional workers within the months forward throughout a number of waves, in addition to shut about 5,000 present listings for open positions. The strikes will have an effect on its recruiting division this week, its tech teams in April, and enterprise teams in Could.

Meta beforehand laid off about 11,000 workers in November, representing about 13% of its workforce on the time, per CNBC. As of December 31, 2022, Meta reported having a headcount of 86,482 folks throughout all divisions—a 20% soar from the yr prior—however mentioned that the tally nonetheless included the general public included within the November layoffs.

Zuckerberg framed the most recent cuts as being a part of Meta’s broader “yr of effectivity” marketing campaign, during which the social media large makes an attempt to proceed forward with a leaner staff whereas flattening its organizational construction, “canceling lower-priority tasks,” and optimizing instruments and processes throughout the corporate.

What does this imply for the metaverse then? Meta made quite a lot of noise in 2021 across the thought of the long run 3D web, altering its firm title to replicate what Zuckerberg described as a brand new frontier for the dominant tech firm. The information helped spur curiosity round Web3 metaverse video games, as properly, with digital land NFT plots surging in worth.

However metaverse buzz quieted down in 2022 amid an array of backlash—to the thought of an immersive web, Meta’s early model of it, and the rising prices of digital actual property.

Meta reaffirmed its give attention to constructing the metaverse late final yr, but it surely has more and more pivoted its messaging in the direction of the renewed fervor round synthetic intelligence (AI) because of the success of rival OpenAI’s ChatGPT. Certainly, Zuckerberg’s submit right this moment mentions AI forward of the metaverse amongst applied sciences that Meta is concentrated on.

“Our single largest funding is in advancing AI and constructing it into each considered one of our merchandise,” he wrote. “Our main work constructing the metaverse and shaping the following era of computing platforms additionally stays central to defining the way forward for social connection.”

In Meta’s Q4 2022 earnings call on February 1, Zuckerberg mentioned that the “main technological waves driving our roadmap are AI right this moment and over the long run the metaverse,” including that the agency’s “priorities haven’t modified since final yr.”

He emphasised then that Meta continues investing in digital actuality and combined actuality headsets through its Actuality Labs division to construct in the direction of a future, immersive web. Nevertheless, Zuckerberg added that “most individuals are going to expertise the metaverse for the primary time on telephones and begin build up their digital identities throughout our apps.”

Yesterday, Meta introduced that it was “winding down” help for NFTs on its platforms lower than one yr after getting into the house. Instagram first launched an NFT trial in Could 2022, letting choose customers of the photo-sharing app show their owned paintings and collectibles. Fb later added the identical function.

In November, Instagram mentioned that it might let creators mint their very own NFTs through Polygon, an Ethereum scaling community, after which launched unique NFT mints from notable creators like photographer Isaac “Drift” Wright and AI artist Refik Anadol.

In a Twitter thread, Meta’s Commerce and Fintech Lead Stephane Kasriel mentioned that the agency would shift away from NFT collectibles “to give attention to different methods to help creators, folks, and companies on our apps, each right this moment and within the metaverse.”

How a lot of a task NFTs and Web3 would play in Meta’s model of the metaverse was all the time unclear. Meta’s metaverse demonstration video in 2021 confirmed NFTs being offered after a digital live performance, and Zuckerberg made a degree to emphasize what he noticed as the advantages of interoperability, however the agency has but to element the extent of Web3 tech in its plans.

Web3 metaverse builders see NFTs as key to their imaginative and prescient of an open metaverse during which customers can convey their owned avatars, attire, and gadgets throughout on-line platforms. However when tech giants like Meta and Microsoft have introduced metaverse plans, they’ve signaled curiosity in interoperable requirements—however no clear embrace of blockchain networks and belongings.

Meta declined additional remark to Decrypt relating to the affect of layoffs on its metaverse push, in addition to how its NFT announcement ties into that.

Primarily based on right this moment’s announcement and different latest feedback, Meta nonetheless says that it’s constructing in the direction of the metaverse. Meta has constantly framed it as a long-term course of, however that message is very being amplified as AI developments take better priority throughout the tech world—and NFTs received’t be a key think about that push, at the least for now.