The last financial results of the Meta group were very bad, and the company is now facing the wall. As of next week, thousands of employees could be fired according to information from the Wall Street Journal.
All these people work within Facebook, the first social network built by Mark Zuckerberg in February 2004. Today the Meta group, as a whole, has more than 87,000 people around the world. This historic wave of dismissals for the group could even be the largest of the year, ahead of that carried out by Twitter a few days ago.
During the presentation of the poor financial results, Mark Zuckerberg had already announced this major change. “In 2023, we will focus our investments on a small number of high priority growth areas. So that means some teams will grow significantly, but most other teams will flat out or shrink over the next year. »
The Metaverse weighs down the group’s finances
We must now succeed in knowing what Zuckerberg and Meta consider to be “priority areas”. According to rumors, the metaverse project, at the heart of the group’s development for months, would still be Mark Zuckerberg’s number one concern.
The founder of Facebook is currently feeding a financial abyss with this project, which has already cost him the small sum of 36 billion dollars, for a questionable result. In addition to this very expensive project, Meta suffers from new competition. With the arrival of TikTok two years ago now, the group has seen its market share plummet. Today, advertisers, the main earners, are no longer present on Meta’s social networks.
An absence that calls into question the entire economic model of the group. Meta has also suffered since the arrival of App Tracking Transparency, a new standard imposed by Apple within all applications present on an iPhone or iPad. With the latter, Facebook, Instagram or WhatsApp must now request permission from the user in order to collect their data. Apple also requires a “decline” button to be present, without hampering the user experience.
Mandatory dismissal for Meta?
A new measure which, here again, undermines the fragile economic model of the Meta group. With a significant drop in earnings in the last quarter, investors urged the board to cut costs. Meta therefore intends to do so with the first massive redundancy plan in its history.
In order to justify the latter somewhat, it is still worth remembering that Meta had hired with a vengeance in recent years. During the pandemic, more than 20,000 people joined the Facebook group. In the first months of 2022, Meta had hired another 15,000 people.