Meta’s recent financial results have been very poor and today the company face on the wall. According to the Wall Street Journal, thousands of employees could be laid off next week. All these people work for Facebook, the first network social built by Mark Zuckerberg in February 2004. Today the group “Meta” in son together has more than 87,000 people worldwide. This vague the group’s firing may even be the most important of the year, ahead of Twitter’s one a few days ago. During the presentation of poor financial results, Mark Zuckerberg had already announced this major change. “In 2023, we will focus our investments on a small number of priority growth areas. So this means that some teams will grow significantly, but most others will shrink over the next year. »
The Metaverse weighs down the band’s finances
Now we need to find out what Zuckerberg and the Meta consider “priority areas.” Rumor has it that the metaverse project, which has underpinned the group’s development for several months, will continue to be Mark Zuckerberg’s number one concern. The Facebook founder is currently feeding the financial abyss with this project, which has already cost him a small sum of $36 billion for a dubious outcome. Apart from this very expensive project, the Meta is suffering from new competition. Since the advent of TikTok two years ago, the group’s market share has plummeted. Today, there are no more advertisers, the main earnings, on Meta social networks. An absence that calls into question the entire economic model of the group. The meta has also taken a hit with the advent of App Tracking Transparency, a new standard introduced by Apple for all apps presented on the iPhone or iPad. In the latter case, Facebook, Instagram or WhatsApp must now ask the user for permission to collect their data. Apple also requires the “dismiss” button to be present without interfering with the user’s experience.
Mandatory layoff for the Meta?
A new measure, which is also here met damage the fragile economic model of the Meta group. Due to a significant drop in profits in the last quarter, investors called on the committee direction to reduce costs. Therefore, Meta intends to do so with an initial plan of mass layoffs for son story. In order to somehow justify the latter, it is still worth remembering that in recent years the Meta has been hiring with a vengeance. More than 20,000 people have joined the Facebook group during the pandemic. In the first months of 2022, Meta hired 15,000 more people.
