Meta Layoffs 11000 Employees – How Meta went from a trillion-dollar company to laying off their employees – Breaking News
Meta Layoffs News –
Recently, META laid off a significant number of employees which shows how the company is finally starting to change. Despite years of controversies over privacy and Russian election interference, their business model felt untouchable just a few months ago.
Even though the immersive online world known as the metaverse was one factor in Meta’s fall, it’s not the only factor. There were also other major blows that made its stock price plummet by 70% in the last year. Those included the rise of short-form video platform TikTok, Apple privacy changes which hurt advertising revenue, and a lack of Gen Z users.
“Forrester Research Director Mike Proulx told Yahoo Finance, ‘The company literally has one foot in one direction, which is the metaverse, and another foot in short form video trying to compete with TikTok, and it’s not doing either particularly well at the moment.'”
TikTok’s rise, and graying Facebook
The app currently has more than 100 million downloads, 1 billion monthly active users, and it’s been downloaded more often than Snapchat. As a result, Meta faces threats from both of these entities.
TikTok’s success is due, in large part, to the company’s short-form video format and algorithmically driven For You page. The app has an advantage over rivals like Snapchat because its videos are generated by algorithms, which guarantees high entertainment value. TikTok continued to perfect its algorithm while also attracting new users with a variety of new features.
Meta’s attempt to take on TikTok’s short-form video, Reels, is also failing to catch on with younger users.
The slowing economy and Apple’s privacy changes created a bleak few quarters for Meta. In the second quarter of this year, they reported their first year-over-year drop in sales and they reported their second decline in sales in their history the following quarter.
It would appear that Meta is making a big bet
It’s not just about the money for Zuckerberg– he also wants to see Facebook’s metaverse take off.
In 2021, the company spent $10 billion on its Reality Labs division, which is building out the firm’s metaverse hardware and software. This year alone, Meta has already spent over $9 billion on the project. During the company’s recent third-quarter earnings call, CFO Dave Wehner said metaverse spending will increase in 2023.
Millions of people will be contributing to an endeavor in which very few of them are actually involved. According to The Wall Street Journal, Meta’s “Horizon Worlds” is far from being a success. At the start, they wanted 500,000 users by the end of 2022 but they scaled that back to 280,000- there are just under 200,000 people running around their lonely digital domain.
Metaverse – A Virtual Workspace
In October, Zuckerberg suggested that the metaverse could become a virtual workspace for digital workers. Experts remain skeptical of Facebook CEO Zuck’s business case for Reality Labs.
“The economic model has to make sense,” she said. “I don’t know anyone who really wants to sit in VR and have a conference call. They’re bad enough in the first place!”
Despite cutting costs by laying off workers, Proulx said Meta needs to rebuild its business strategy if it wants to attract more customers. Turning things around for Meta could mean the company having to choose between building Zuckerberg’s vision of a metaverse or sticking with the social media apps that made it successful.
Business experts predicting that the Meta will see Bleak in coming 2023. Not only Meta but Big IT Companies may layoff their employees in coming days and the IT Industry can fall.
Elon Musk Tweet To Twitter Employees
Elon Musk warned Twitter employees be alert of upcoming crises or recession in Meta Layoffs and there will be danger ahead.
With this Elon Musk alert to Twitter employees, we can predict that the IT Industry fall.
Also Read: Eric Kay is sentenced to 22 years in prison for the death of Tyler Skaggs