Mark Zuckerberg urged to spend less on metaverse after suffering losses

Meta, the parent corporation of Facebook, is under pressure to reduce its concentration on the metaverse, as investors claim that it is resulting in "terrifying losses."

The software behemoth changed its name to Meta last year in anticipation of creating a virtual world used by millions of people.

However, Mark Zuckerberg's metaverse has been plagued with technological issues, with user numbers well below executives' expectations.

According to a report by Sky News, Reality Labs, the Meta division responsible for developing the metaverse, lost £3.16 billion between July and September, compared to £2.27 billion during the same time last year.

Meanwhile, CEO Mark Zuckerberg says that it would be a mistake to not focus on the metaverse because it will be fundamentally important to the company’s future.

Analysts have stated, however, that the metaverse "feels like a huge gamble," particularly in light of the present economic crisis, and that the road ahead will be "long and unpleasant."

A fund that invests in Meta demanded this week that the business reduce its annual investment in the metaverse from $10 billion to $5 billion.

Debra Aho Williamson, an analyst at Insider Intelligence, has cautioned that Meta must turn its company around by concentrating less on the metaverse and more on mending its main business.