Why are the preliminary losses in Meta ‘s history so crucial?

Meta

Meta faces the harsh truth and makes the first cuts to its staff in its history. One that had a lot of firsts for the business.

Many people thought that Meta, which used to be called Facebook, was a mythical being. Since the Rings of Power are in the limelight, she’s perceived as a serene everlasting elf. She hasn’t been damaged by not being polite to Mark Zuckerberg’s social network. Because the company’s creator aims to revolutionize teamwork. Meta, which encompasses Instagram, WhatsApp, and Facebook, will slash workers and slow growth.

It is a fact of history that shows how important technology is. Meta has grown steadily since it was started in 2004, before the Great Financial Crisis. Neither in terms of money or users. Before a competitor that could stand up to the power of the mother social network, the acquisition was a quick way to get rid of it. In 2012, with Instagram. In 2014, with WhatsApp. But something was different in the first three months of 2022. The threat of TikTok and the arrival of the metaverse marked a before and after. At the same time, the advertising business, which is the most important part of Meta, continues to lose money.

Preliminary losses in Meta

During the company’s weekly meeting, the news of the hiring freeze and possible layoffs in some of Meta’s non-strategic areas hit home with the employees. Bloomberg says that it will be up to the managers of each unit to decide how many teams to cut. Those whose budgets will be cut in a bigger or smaller way, depending on what they do.

But Zuckerberg’s speech still has a lot to say about the international economy. Which the big tech companies can’t get around by going slowly. “I thought the economy would have been more stable by now,” Zuckerberg told his employees, as quoted by Bloomberg. “But from what we can tell, he hasn’t done it yet, so we want to be cautious with our plans.” In fact, it’s the worst thing the founder of the social network has said in a long time.

TikTok lacks credibility, but not Meta

Meta, and more specifically Facebook, has not had a good history as a company or social network. For years, everything about users’ privacy and how well they protect it has been called into question. In a literal sense. Since 2018, when the company’s founder testified before Congress regarding Cambridge Analytica. Spying on millions of users’ data and manipulating the system to affect election outcomes. All of them fit with the well-known fake news stories that are still true today.

Even though Cambridge Analytica was a big deal, most people didn’t feel any pain or glory when it happened. If we asked anyone about this crisis, it’s likely that few would remember how it affected Meta.

Meta’s credibility hasn’t gotten it in trouble. He ran. First Facebook and Instagram rival. TikTok rewrote the rules. Snapchat avoided controversy because it was never popular. TikTok is taking over the younger generations, which Meta can’t control anymore, and Meta doesn’t seem to know how to deal with this new reality. After all, he had never had such a strong pair to compare himself to in his 18 years.

Did you like the idea of the metaverse?

Zuckerberg made a big change in Facebook during 2021. First, he wrote down the name of the social network where he did exactly what he did. He chose the name Meta to group all of his business together. It was a warm-up for the new business that technology was putting all of its eggs in. Future eggs, yes. The metaverse came in through the front door with Zuckerberg by its side.

Soon, people were hired. They were thousands. And also in Europe, which was a big deal for the old Facebook. Also, investments worth a lot of money. And soon after that, a break from the hopes of the Meta metaverse. A little less than a year later, the company’s digital universe and hiring on Earth were both hit by the crisis that had been predicted. They said they would stop hiring people, especially those who would help make that metaverse. What’s up? In fact, it is a crisis. But also a less optimistic view of how profitable Meta’s new line of business will be. So far, the metaverse has only cost money, and even though it has put the company back at the centre of the ecosystem, it hasn’t changed its finances.

Meta also continues a trend that started with virtual reality and the purchase of Oculus a few years ago. The simple announcement set off a sector that quickly went down by leaps and bounds as soon as it went up. There seems to be a copy of the VR winter that Zuckerberg caused in the metaverse. One that will fall from a higher place.

Meta, tech businesses just speak about layoffs

Large technology companies have been dealing with it for months. Since the beginning of 2022, all that has been said is that staff will be cut. Also, there is a serious problem with not enough talented people filling tech jobs. Another one of the strange things about the 21st century. The war between Russia and Ukraine, the energy crisis, and the global economic crisis caused by the pandemic have all added to the uncertainty.

Zuckerberg said he’d spend less time hiring for Meta’s subsidiary this year. Since then, things have worsened. Everyone now knows what only corporate leaders knew before. By 2022’s end, Facebook will be smaller than at the start. One of the largest IT corporations never knew this.

But it’s better to be sad with other people, and Meta is not alone. Everyone in advertising has had to put the scissors down. Snap, Alphabet, and Twitter have also hired a lot of people from all over the world, mostly from the marketing industry.

Some compared the outbreak to the dot-com catastrophe of the 1990s. You’d have to ignore the facts to blame the decline in advertising. The enormous and millions spent watering the habitat were to fault. Since cheque books are more meticulous, it’s time to budget.

It is hard to keep track of all the tech companies that have let people go or changed their staff. Practically, it would be easier to say “those who haven’t put the scissors to date.” Tesla, Netflix, Klarna, Shopify, LinkedIn, etc. It goes without saying that the cryptocurrency world has been hit the hardest by the drop. Due to the crisis in the cryptocurrency market, the business has been broken up the most in its short history.

In the end, everyone was just waiting for the storm to pass. Also, a Meta that looked like it couldn’t be hurt.

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