bad year Aim will result dismissal 13% of the workforce. This Wednesday, its parent company Facebook, Instagram, What’s up? and other apps confirmed that it will lay off more than 11,000 employees worldwide, and made one of the largest staff cuts in the world. technology industry.
In a post on the company’s blog, the founder and CEO said, Mark Zuckerbergtook responsibility for the layoffs, saying it was too optimistic about its growth prospects. “With the onset of Covid, the world quickly went online, and the rise of e-commerce led to enormous revenue growth,” he explains. “Many predicted that this would be a lasting momentum that will continue even after the pandemic is over. That’s what I did, so I decided to significantly increase our investments. Unfortunately, that didn’t work out as expected.”
In that statement, Meta confirmed that more than 11,000 employees had restricted access to the company’s systems “which were granted access to sensitive information.” A decision that affects workers all over the world, including Spain. Even so, the tech giant’s employees will hide their emails for a few days so “everyone can say goodbye.”
Zuckerberg confirmed that, as he’s already moving forward in his latest presentation of results, Meta wants to be “leaner and more efficient” and that from 2023 its corporate strategy will focus on cutting expenses and staff and investing more resources in a “smaller company”. number of high priority growth areas. These priorities are the construction of the long-awaited.virtual universe‘, the development of systems Artificial intelligence (IA) and get your income back advertisementresponsible for more than 90% of its business.
critical year
giant social networks especially in a critical year. The bad results of his business, hit by changes in privacy policies as well as economic turmoil. view and fierce competition TikTok, They caused the company’s stock market value to drop by 70%, a drop in the industry beyond that of Snap alone.
In the third quarter of this ‘annus horribilis’ Meta reduced its profit by 52% to 4,400 million euros. Although still a money machine, Zuckerberg’s company has suffered only two quarterly declines in its history in the past six months. All this led to the first major cut in staff since its founding in 2004.
errors in the metadatabase
In addition to macroeconomic conditions and changes in the digital ecosystem, Meta’s poor results are also due to the company’s large investment in Reality Labs. virtual reality. Not surprisingly, building the so-called metaverse is a long-term investment. However, they have lost $9.2 billion to that end so far this year.
It’s also the platform’s first attempt to design a more immersive digital world. Horizon Worldsdoes not produce the expected results. Its design flaws and unpopularity mean that even MySpace has more views than what is currently being touted as the “internet of the future.” The sales volume of Meta Quest 2 reality glasses is also lower than expected.
This caused the company’s shareholders to become increasingly concerned about this bleeding and demanded—even publicly—to limit this expense (about $2,000 million per month) to increase both profitability and revenue. Shareholder pressure does not threaten absolute control of Zuckerberg, who owns 56.6% of Meta’s voting rights, but adds new concerns about Meta’s reign in the digital ecosystem.
Source: Informacion
