Meta (Facebook) is experiencing "one of the worst slowdowns" of its existence, the reaction is not long in coming

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Gohel Manish
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Meta (Facebook) is experiencing "one of the worst slowdowns" of its existence, the reaction is not long in coming

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The giant Meta, parent company of Facebook, has been going through a turbulent period for the past few months, which has prompted it to revise its ambitions downwards.

Mark Zuckerberg does not hide it: his company is experiencing “one of the worst slowdowns” in its recent history.

These are the words spoken Thursday by the founder of Meta, during a question-and-answer session with the employees of his company, which Reuters got wind of. As a result, the group is revising its recruitment target downwards.


A downward recruitment target, and the bet on “self-selection”

Meta had planned to hire 10,000 new engineers in 2022. But the company's certain economic slowdown is pushing Zuck and his staff to scale back their plans.

The Californian entity thus plans to recruit no more than 6,000 to 7,000 engineers this year, a decrease of approximately 30% compared to its initial objective.

Note that Meta had already recently announced an official hiring freeze. So in detail, how does Mark Zuckerberg justify this slowdown? And what are the prospects within the company?

"In reality, many people in the company should not be here," Zuckerberg told his employees.

A way like any other to push towards the exit those who would feel less concerned by the project and would have difficulty in meeting the objectives? You just got it.

The majority shareholder is even betting, bluntly evoking a "hope", that by raising expectations and having more aggressive objectives, some of the employees will leave the group on their own, considering that this place is not finally not made for them. “This self-selection suits me,” he added.

Perspectives far removed from the great era

Meta's growth has slowed, until it saw an unprecedented drop in the number of users for the general public a few months ago, something unthinkable three, four or five years ago. But reality is catching up with Facebook's parent company.

And in addition to the slowdown in user growth, it is the decline in advertising revenue that is further pushing the group to make drastic decisions.

All the American digital giants have revised their forecasts downwards, and Meta is no exception to the rule. The violent fall in its share price (halved over the past six months) has caused it to lose half of its market value.

For Meta, we won't go so far as to say that the next few months will be decisive, but almost. The company must face fierce competition from TikTok, which will lead it to review its various products, to perhaps make them more immersive and attract more attention from its users.

The Reels format, on the Instagram side, is an interesting starting point. As such, Meta will multiply by five the number of graphics processing units (GPU) in its data centers, and this, by the end of the year.

Good news for Instagram, yes, but not necessarily good for the giant's carbon footprint.

The other big challenge for Meta is that of the… metaverse, of course. A trend that could just as easily be exploited for the average user as for the business world, fond of making the work experience ever more fun.
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