“So I think that there’s going to be some more that we can do to improve our productivity, speed and cost structure and by working on this over a sustained period,” he said. In the end, he said, he and other managers were surprised that certain cuts, like reducing layers of management, actually ended up making the company better. Zuckerberg said the difficulties of 2022 had forced the company to look at how it could cut costs. Zuckerberg has hinted to employees that more layoffs and management cuts may lie ahead in 2023. In response to its revenue drop and the inflationary market pressures, Meta laid off 11,000 workers in November. “Investors are cheering Meta’s plans to return more capital to shareholders despite worries over rising costs related to its metaverse spending.”ĭespite the positive outlook, Zuckerberg called for more belt-tightening in what signals another tough year ahead for the company’s employees. “Tech investors are relieved to see that the slowdown across Meta’s key ad business was not as bad as feared,” wrote Jesse Cohen, senior analyst at, after the call. Meta laid off 11,000 workers in November. With the better-than-expected results, Meta’s shares jumped almost 18% in after-hours trading. Analysts were expecting $31.55bn.Īnalysts had predicted the company would see a big drop in its fourth-quarter net income compared with the previous year due to shrinking ad revenue and higher costs. “Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.” “The progress we’re making on our AI discovery engine and Reels are major drivers of this,” said Mark Zuckerberg, Meta’s CEO, in a company statement. It said its investments in AI-surfaced content and Reels, a short video competitor with TikTok, were starting to pay off. “But I think we ended up having made good progress on our main priorities and setting ourselves up to deliver better results this year, as long as we keep pushing on efficiency.” “2022 was a challenging year,” said Mark Zuckerberg. Earlier it had also increased spending on the metaverse and on its short-form video content product Reels. In part, this was as a result of “charges related to our restructuring efforts” according the the company’s release. Meta’s costs and expenses climbed by 22% in the fourth quarter compared with a year earlier.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |