The company has seen its share price plummet more than 70% this year, with investors wary of large investments in underpriced super-reverse services that could take years to come to fruition. profit — if they do. And while Meta remains a social media rogue, threats to that business have also emerged, with stiff competition from rapidly increasing rival TikTok and changing about privacy on Apple devices.
Even some of the Meta employees working on the metaverse services were unimpressed with them, according to the leaked documents, with a comment, “An empty world is a sad world.” The investors was pressured CEO Mark Zuckerberg to scale down the company’s metaverse investment, but to no avail.
Zuckerberg believes the metaverse is the future of the company and says it will need more than $10 billion in annual investment. The effort has cost the company $15 billion since the start of last year, according to Magazine. Meta’s rapidly rising costs caused Meta’s free cash flow to drop 98% in the most recent quarter.
The layoffs at Facebook came even after deeper layoffs at Twitterwhen new owner Elon Musk insisted they were needed, tweeting on Friday, “There is no other option when the company is losing more than $4 million.”
Meta’s woes this year caught many investors off guard. Among them is Jim Cramer, host of CNBC’s colorful show Crazy money, who told viewers a few times earlier this year that he thinks Meta stock will bounce back. Late last month, after Meta revealed another tough quarter, Cramer said with a sad voice, “I made a mistake here. I’m wrong. I trusted this management team. That is wrong advice. The arrogance here is extraordinary, and I apologize. ”
Adding to the company’s woes, its reputation suffered last month when it fined nearly 25 million dollars for violating campaign finance disclosure laws by a Washington state judge, who said of Facebook in a news release, “It knowingly disregards Washington’s election transparency laws. But that’s still not enough. Facebook argued in court that those laws should be declared unconstitutional. It is spectacular.”
In August, Zuckerberg described for podcaster Joe Rogan what it’s like to lead the company. “It’s almost like every day you wake up and get punched in the stomach. You wake up in the morning, look at my phone, get like a million messages. It’s usually not good. People take nice things to say to me directly. “
Meta employees won’t be completely surprised by the layoffs. Company officials recently asked workers to cancel non-essential travel, and in June, Zuckerberg told employees at a companywide meeting, “In fact, there’s probably some People at the company shouldn’t be here.”
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