With the latest cuts, Meta expects expenses in 2023 to come in between $86 billion and $92 billion, lower than the $89 billion to $95 billion forecast previously. Meta has teased AI-powered "creative aids" that can generate images, videos and text but has yet to offer any such products on its apps, even as peers have launched dueling generative AI chatbots and productivity tools in recent months. In his memo, Zuckerberg made scant mention of virtual reality and instead emphasized the company's focus on AI, saying Meta's single largest investment was in "advancing AI and building it into every one of our products." "Virtual reality is an expensive business to be in, so while (Meta) maps out a path through an uncertain landscape, it needs to find efficiencies elsewhere," she added. The latest downsizing indicates "how desperate the company is to get costs under control as its revenues have fallen amid declining marketing budgets," said Hargreaves Lansdown analyst Susannah Streeter. The stock received another boost in February when Zuckerberg dubbed 2023 the " Year of Efficiency," with new cost controls and a $40-billion share buyback. Wall Street has been rewarding Meta steadily since its November restructuring, after its share price fell more than 70% earlier in 2022. This is an unofficial community dedicated to news, discussion and help relating to Facebook & Meta. The company also has struggled with Apple-led (AAPL.O) privacy changes and competition for young users from short video app TikTok.Īt the same time, Meta has been pouring billions of dollars into its metaverse-oriented Reality Labs unit, which lost $13.7 billion in 2022, and investing in infrastructure to support its artificial intelligence usage. 92K subscribers in the facebook community. Investors have grown wary of Zuckerberg's prolific spending as revenue growth from Meta's main businesses petered out amid high inflation and a digital ads pullback from the pandemic e-commerce boom.
Both changes were initially reported by the Wall Street Journal. It also disbanded its skunkworks New Product Experimentation team and reassigned leader Ime Archibong to work on product for Messenger, according to an internal memo seen by Reuters. On Friday, Meta said it was exploring " strategic alternatives" for Kustomer, a customer service company it acquired last year. Meta Platforms Weakness in digital ad spending due to macro pressures has hit social media giant Meta Platforms ( META) over the recent quarters.
The first of the latest wave of cuts appeared to have started even before Zuckerberg's announcement.
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