I just think we are entering a period of some change in the company, Metas CEO said, noting that the number of employees has increased steadily for nearly two decades, making it very difficult for the company to truly achieve efficiency while growing so rapidly.
Now, after laying off about 11,000 employees and suspending most of his recruitment, Mark is focusing on increasing the effectiveness of decisions in the company.
In fact, Mark Zuckerberg said this means flattening our organizational structure and eliminating some mid-level management layers to make faster decisions.
It seems that companies on Wall Street are showing their love for the strap-on procedure. Meta's stock price has increased by nearly 20% after its income report was published along with a comment by Mark Zuckerberg.
The company has paid a one-time fee of $4.2 billion for laying off employees, canceling some building rental contracts, and withdrawing from expensive data center projects.
The report also suggests that more layoffs are coming in its press release: We could bear additional restructuring costs as we go further in our efforts to create our efficiency.
Meta's core business is selling advertising and services, which still face many challenges at the present time. One of these challenges was demonstrated when Meta's total revenue in 2022 decreased by 1% compared to 2021. However, Mark Zuckerberg has been optimistic about the income report, although the progress of initiatives such as Reels' performance has not yet met expectations.
And for all the predictions about Facebook's own slow-moving expansion, the numbers tell another story, as daily users reach an astonishingly large number of two billion for the first time in the fourth quarter of 2022.
We will be more proactive in cutting down on projects that are not working or may no longer be important, said CEO Zuckerberg. Currently, this policy does not apply to metaverse development efforts, efforts that are still more costly than ever without any profits. reality Lab, Meta's upcoming Quest headset and AR glasses manufacturing division, reported an operating loss of $13.72 billion for 2022. That number is expected to continue to increase this year.
Since Facebook changed its brand to Meta in the fall of 2021, investors have increasingly worried that Mark Zuckerberg is spending too much on his Metaverse dream.
