![]() ![]() Read Zuckerberg’s full letter to Meta employees here. ![]() I’m confident that if we work efficiently, we’ll come out of this downturn stronger and more resilient than ever.” And we’re leading in developing the technology to define the future of social connection and the next computing platform. “Billions of people use our services to connect, and our communities keep growing. Our core business is among the most profitable ever built with huge potential ahead. “I believe we are deeply underestimated as a company today,” the CEO concluded. “This is not a reflection of the great work these groups have done, but what we need going forward.” “We’re also restructuring our business teams more substantially,” Zuckerberg said. Zuckerberg said that layoffs are to be expected across Meta’s Family of Apps and Reality Labs, but that some teams will feel the effects more than others recruiting, for example will face larger cuts proportionately since hiring will be stalled going into the new year. ![]() Meta announced in October at the time of Q3 earnings its plans to cut costs by restructuring some teams and launching a hiring freeze to combat expenses in the face of a growing ad slump.Įmails are expected to go out on Wednesday for impacted parties. ![]() He has been pushing to diversify the company’s revenue streams beyond Facebook’s heavy dependence on advertising. The company has poured billions of dollars to remake the company around chief executive Mark Zuckerberg’s image for the metaverse, powered by its Oculus brand’s virtual reality products. He’ll keep building the metaverse, but he’ll focus most of his time on improving Meta’s core social media business (Facebook and Instagram). As of an SEC filing from September, Meta has a staff of over 87,000.Īs TheWrap previously reported, Meta’s Q3 earnings came in well below Wall Street’s expectations, as the Facebook parent realized a decline in advertising revenue for the second straight quarter and further losses tied to its virtual reality ambitions. Zuckerberg says he has a plan to reverse the slump. It marks just the latest tech industry shakeups as companies respond to high inflation and heightened interest rates. “I think there’s a number of different products and platforms that we’re building, where we think we’re doing leading work that will become…launching consumer products and then eventually mature products at different cadences, different periods of time over the next five to 10 years,” Zuckerberg said on a Thursday earnings call.Why Facebook’s Meta-Morphosis Has Already Flopped | PRO Insight Zuckerberg has sought to inoculate investors against the company’s underwhelming economic performance by pointing to expected long-term gains. “These companies are really important bellwethers on advertising and on flows of goods and services… If advertising growth is slowing over there, it is adding weight to that fear of an earnings slowdown,” chief investment officer Fahad Kamal of Kleinwort Hambros told the Wall Street Journal. The decline was pushed by news that its revenue growth slowed to its lowest level in over two years while YouTube (also owned by Alphabet) reported its first ever advertising sale drop off. The latter reported a 14 percent decline in profits stemming from PC licensing revenues drying up.Īlphabet’s stock dropped by over nine percent in its worst single trading day since the pandemic began back in March 2020. Meta’s woes have been part of a broader tech bruising seen this week as major companies such as Alphabet (Google’s parent company) and Microsoft have reported underwhelming earnings. ![]()
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