The company has faced its biggest in recent months reputational crisis. You have tried to group all your applications under a single label. You changed your brand name,Meta Facebook, turning its strategy of turning to the metaverse, which, in principle, the company notes that users will access through a virtual reality viewer, with 3D avatars and by connecting different digital environments. But this remains to be proven. Its creator doesn’t expect it to be developed before the age of five. And that in the technological world it is a desert. Indeed, Mark Zuckerberg is paying with his fortune for this shift to the metaverse that Wall Street has begun to turn its back on.
The best days of Facebook are behind us. His future is full of unknowns, mainly due to the weight exerted by the lack of credibility and the feeling of manipulationthat has spread among users. There are those who warn that the giant risks falling into irrelevance.
It is not a feeling. Your income statement is impressive. Meta shares fell 11% in just one week, a seven-year low. The Silicon Valley giant is bleeding to death as it tries to finance the metaverse vision promoted by its owner, Mark Zuckerberg. So far in this 2022 it has lost 73.7% and almost 80% since the peak of 2021. Forbes, its market capitalization of $ 236 trillion, a long way from last summer’s billions, and its profits were cut by nearly 50% due to lack of advertising revenue. The story of Facebook is no longer the story of the growth titan.
Meta, the parent company of Facebook, announces the largest workforce cut in its history, with 11,000 layoffs
The American tech company Meta, owner of Facebook, WhatsApp and Instagram, chaired by Mark Zuckerberg, has given figures on the cuts to the workforce it has been planning for days for the company. More than 11,000 employees will leave the company, which will cut its now composed workforce 83,000 workers13%.
This is the largest cut made by the tech company in its 18-year history, but it is alsothe hardest cut than those undertaken so far by the giants of the tech industry American. The measure is part of the plan studied by the company to cope with the incessant decline in revenues that it suffers due to increased competition. And it also constitutes a taste of the fiasco that can mean putting all the meat on the grill of his billionaire, and for now ruinous, bet on the metaverse. A strategy to which Zuckerberg has entrusted the future of the company and to which, for now, investors have turned their backs.
Keep reading
