How serious is Meta's financial crisis? Layoffs, cancellation of technology projects, and cuts in department spending!

It is learned that Mark Zuckerberg's company Meta has encountered an unprecedented internal crisis. Not only has it lost billions of dollars, the Metaverse has not been launched, and two major technology projects have been cancelled after layoffs.

As Meta struggles financially due to a lack of investors and advertisers in the wake of the COVID-19 pandemic, the hardware division has confirmed spending cuts and also canceled two major projects: the Portal smart display device and its new plans for a smartwatch.

Zuckerberg hopes to compete with Amazon's Alexa by designing new, low-cost technology products that Facebook users can connect to.

Of all the product lines, Portal is the most affected. The team believes that its line of smart devices (something between a speakerphone, a tablet and a voice assistant with video calling capabilities) can compete with Alexa and become Facebook's first step into hardware on a large scale.

However, the idea never really caught on, and now Meta has announced it is ceasing manufacturing, meaning no new equipment will be produced from the line, and has confirmed plans to restructure its audio and video division into a more end-customer focused unit called Family Foundations.

Another canceled project is the Meta smartwatch, a new watch concept that was spawned a few years ago but did not capture public interest. After several delays, it was originally planned to be released in 2023 with a price of $350, but it has now been decided to abandon it.

Meta gave up on continuing to launch this smartwatch in the saturated watch market and plans to use this resource on other products with greater commercial appeal, such as the Meta Quest virtual reality headset and its derivatives.

It is learned that after the template adjustment, Meta will cancel the production of the above two categories of technical products and withdraw many hardware projects. It is worth noting that Meta's human resources director Lori Goler said that layoffs are not being considered at present, but costs in other departments will be further tightened.

Editor ✎Estella/

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