Plans for Meta are full steam ahead as many lose their jobs.
•Meta, the parent company of social media platform Facebook, will cut more than 11,000 jobs, or about 13% of its workforce, CEO Mark Zuckerburg revealed on Wednesday.
• The move is one of the “most difficult” in the company’s history and is in response to a reversal of online commerce trends following Covid lockdowns as well as increased competition.
• Zuckerberg said that the company would be taking other steps “to become a leaner and more efficient company” including cutting discretionary spending and extending its hiring freeze through 2023.
• Despite Reality Labs posting a loss of over $3.6 billion in the third quarter of 2022, Meta has a “long-term vision for the metaverse” according to Zuckerburg.
Facebook has announced that it will be cutting more than 11,000 jobs, or about 13% of its workforce. This is in response to increased competition from other social media platforms as well as a reversal of online commerce trends following Covid lockdowns. Despite Reality Labs posting a loss of over $3.6 billion in the third quarter of 2022, Meta has a “long-term vision for the metaverse” according to Zuckerburg.
Zuckerberg has gone on in a message to employees to state that this was the “most difficult” move in the history of the company but he is focused on Meta becoming a “meaner and leaner” company stating that discretionary spending would be cut and extending the hiring freeze through 2023.
It is no secret that Facebook has been struggling to keep up with the likes of Snapchat and Instagram in recent years. This news comes as a surprise to many, as Facebook has been one of the most successful social media platforms since its inception. However, with the rise of other social media platforms, Facebook has been struggling to keep up. In addition to job cuts, Zuckerburg said that the company would be taking other steps “to become a leaner and more efficient company” including cutting discretionary spending and extending its hiring freeze through 2023. Only time will tell how these changes will affect Facebook, but it will certainly be interesting to see how the company fares in the coming years.
What does this mean for Facebook?
It is hard to say what exactly this means for Facebook in the long run. On one hand, it is possible that these changes will help Facebook save money and become more efficient. On the other hand, it is also possible that these changes will be too little too late and that Facebook will continue to decline in popularity. Only time will tell how these changes will affect Facebook, but it will certainly be interesting to see how the company fares in the coming years.
Zuckerberg has stated in the announcement that he takes the blame. “I want to take accountability for these decisions and how we got here, I know this is tough for everyone, and I’m especially sorry to those impacted”
The Meta CEO then went on to blame the job cuts on a reversal of online commerce trends following Covid, the wider macroeconomic downturn and the various competition Facebook has had to face.
The company is still focused on making Meta a reality and the company will make reductions in every organization across the Meta ecosystem, this includes Facebook, Messenger, Instagram, and WhatsApp.
Reality Labs is the virtual and augmented reality arm of Meta that designs both the hardware and software of Meta’s metaverse offerings including the Occulus headset and the struggling Horizon Worlds.
Meta has been focused on bringing web3 to the masses with NFT features being implemented on Facebook and Instagram since the middle of 2022. This past September 2022 all of these features have been made available to all U.S users of the two platforms. Users are able to add NFTs to their profiles and currently, it supports digital collectibles that are issued on Ethereum, Flow, Polygon, and Solana in the future. There was a recent announcement by Meta that the Polygon blockchain will be used to allow the minting and selling of NFTS on Instagram.
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