media reports
The Meta Facebook group is struggling with falling advertising revenue.
Photo: DPA / Gian Ehrenzeller
Menlo Park (dpa). According to media reports, the Meta Facebook group is facing significant job cuts. That’s several thousand jobs, the Wall Street Journal wrote. The New York Times did not provide any numbers, but reported that they could be the most significant job cuts since the company was founded in 2004. The decommissioning could begin later in the week, it reads, citing informed people. . Facebook recently had a whopping 87,000 employees.
Meta has the problem that its core business with advertising in online services like Facebook and Instagram generates less revenue than before. At the same time, the development of virtual worlds promoted by founder and boss Mark Zuckerberg with the keyword Metaverse is consuming more and more money. Zuckerberg had recently announced that the number of Meta employees could no longer grow for the moment and could even decrease in the next year as the group would focus on fewer areas.
In the last quarter alone, the Reality Labs division, which is working on the Metaverse, reported an operating loss of nearly $ 3.7 billion. A $ 9.4 billion deficit has accumulated since the beginning of the year, with revenues of $ 1.4 billion in the area. And Zuckerberg announced that Reality Labs’ losses would “grow significantly” over the next year.
Meanwhile, the decline in sales has accelerated. Meta suffers from the frugality of advertisers, who spend less money on online ads in the face of high inflation and economic worries. Meta revenue fell 4% year-over-year to $ 27.7 billion. The bottom line is that profits fell 52% to about $ 4.4 billion. The share price has been under pressure for months as investors find the Metaverse’s investments too high.
© dpa-infocom, dpa: 221107-99-413139 / 3
