With recent investments in virtual reality and its own metaverse, everything led to the belief that Goal would continue down this path for years to come. However, Mark Zuckerberg told employees during a Q&A session that the company will freeze hiring and restructure some teams. The goal is to trim some expenses and realign priorities. As a consequence, the CEO believes that the company is expected to be smaller in 2023.
From this decision, Meta will make the first large-scale budget cut in its history. Remembering that Facebook, the company’s previous name, was founded in 2004.
According to Bloomberg, a person who participated in the Q&A reported some information said by the tycoon. Thus, the decrease in expenses should occur among almost all teams, even those that are growing.
In addition, each team will need to find ways to deal with a smaller number of professionals. This means that if an employee leaves, for example, members and leaders must “turn around” to fill the space. Perhaps recruiting people from another group or working around the situation.
Following this thought, it is to be expected that the company will be smaller in 2023, not only in investments, but also in the number of employees.
Even making investments in a short videos to compete with TikTokthe goal is over earning less than expected in the last three months of 2021. In fact, the owner of Facebook, Instagram and WhatsApp, came across the first drop in quarterly revenue in ten years.
We can think that the main factors of this decrease are related to the user’s attention, that is, how to get it and how to keep it.
For starters, competition on social media has increased considerably in recent years. TikTok is attracting younger people with its dances and casual format, something that Instagram has yet to establish itself as a strong name for this audience.
In February, Facebook saw yet another competitor grow. O Twitter had a 13% growthwhile the social network Meta stagnated in the number of active users in the fourth quarter of 2021.
Furthermore, Apple did not help Mark Zuckerberg’s plans at all. At restrictions created by the applewhich require explicit user permission from applications to track them, have impacted the accuracy of ads and, consequently, the effectiveness of advertisements.