Meta (Facebook) stops recruiting people, the question mark hangs more over layoffs

Meta and her projects have not been a bed of roses lately. While the company does not have problems with profits, there are several negative indicators that indicate that everything is not as rosy as it once was. The social network Facebook is no longer growing and is facing stagnation, or rather an outflow of users. For the younger generation, it is already a network that they basically do not register, and they only use the Messenger messenger and the social network Instagram rather than Meta products. However, even Instagram is facing increasing competition, especially in the form of TikTok, which it is trying to compete with with its Reels (similar to YouTube with its Shorts). According to Meta, Apple’s stricter policy, which allowed users to request not to be tracked, dealt a blow to the company in the form of a decrease in revenue by USD 10 billion. He wants to catch up with artificial intelligence systems, which won’t be cheap. Plus, she’s facing lawsuits for trying to circumvent these do-not-track restrictions.

Furthermore, Mark Zuckerberg should have announced the suspension of the process of recruiting new employees in his communication with his employees (by the way, already in June, the recruitment plans were reduced by 30% from 10 to about 6-7 thousand). A reduction in the budgets of individual departments is also expected, and although the company has not confirmed this in any way, we can also interpret it as a consideration of layoffs. The question is what to imagine under restructuring and budget cuts, while reducing the workforce is not exactly an unusual step in such situations.

Zuckerberg has been chasing his metaverse dream lately, with no tangible results yet to be seen. He believes it will be a big thing in the future, but so far his Reality Labs is making huge losses. Maybe this will give it a huge head start and overtake all other companies in the future, maybe not. What do you think? Laura Martin, an analyst at Needham, said she’s not sure if Meta even has a core business that’s doing well.

Let us remind you that at the turn of August and September of last year, the Facebook share was worth USD 384, today it is USD 136 (it was last this much in January 2019, then it fell to only a slightly higher number during the coronavirus panic in March 2020). That’s down 65%, and there are only 4 companies in the S&P 500 that have underperformed Meta this year.


Source: Svět hardware by www.svethardware.cz.

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