New Report Confirms Meta Is Keen On Cutting Costs By Up To 10% Very Soon

It’s been a tough year for many companies in the digital world and tech giant Meta is no exception.

Now, a new report has spoken in detail about how the firm is keen on cutting out costs by up to 10%. And this change could soon be taking place in the next few months, the report added.

These cuts are likely to involve reducing the number of jobs due to internal shifting and reorganizing of departments. Hence, we won’t be seeing formal job terminations or layoffs take place which is a sigh of relief to many out there.

This new report was published on Wednesday by WSJ and made a lot of misconceptions about the whole situation clearer for everyone to understand.

Meanwhile, the earnings report for Q2 of July showed the parent firm of Facebook reporting a mega 22% YoY rise in both its expenses and its costs. And that gave a grand total of around $20 billion. And in case you did not know, there’s already a huge sum of money being spent on the Metaverse. Similarly, there’s plenty of hope being attached to the endeavor about how the technology will covert into mega sales.

This was also the year that the firm spoke of a massive drop in its revenue when compared to previous reports. They were then able to predict via that earnings call how sales would continue to decline in Q3 so it’s not a pretty picture. Meanwhile, the firm’s CPO revealed to his employees during the early part of the year via a memo how the firm is dealing with some difficult times. And that is why there is simply very little to no room for error.

Therefore, the workforce needs to give their best and carry out flawless execution in everything they do. Also, teams in the company shouldn’t be expecting a new influx of engineers or better budgets because it’s just not too stable right now to afford such drastic changes.

There are a number of factors being outlined as challenges that are hindering the firm from moving forward and achieving success in these difficult times. This includes Apple’s mega privacy update that drastically took a negative toll on Facebook’s ad revenue. It’s a mega loss that the firm is yet to recover from.

Similarly, the competition is tough and archrivals like TikTok aren’t making things easy as their stellar algorithms are making sure they stay in the lead in terms of leading market share. But it’s not only Meta that is feeling the heat. The same goes for apps like Pinterest, Twitter, and Snapchat which have been reporting similar downfalls during periods of economic uncertainty.

We know that the company’s shares were up by less than 1% during the midday trading hours. They managed to reach the $146 mark recently. But we must remember how shares for the firm took a mega tumble by around 55% in 2022 and that’s really record-breaking for the firm.

It’s been outlined to be worse than that observed for S&B 500, which was down less than 20%. Moreover, it even went below the shares of the NASDAQ Composite, which had recorded a decline of 26%.

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