Beautiful Virgin Islands

Thursday, Oct 09, 2025

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Shares climb in after-hours deals as the company's forecasts for revenue in the current quarter suggest the ad downturn may be easing at a time when Meta places a greater focus on efficiency.

Facebook's parent firm recorded a 55% drop in profits during the final quarter of 2022 - the result of a $4.2bn restructuring charge that included the cost of thousands of job cuts.

Meta Platforms, which also includes WhatsApp and Instagram in its stable, said its net income profit measure slumped to $4.65bn between October and December.

That was down from a figure above $10bn during the same period in 2021.

However, its quarterly revenue, ad revenue and Facebook's daily active user measures all beat market expectations.

Users of its platforms, taken together, were up 4%, with Facebook's alone hitting two billion.

Shares, down by about 60% from their September 2021 peak at the market close, were up by more than 12% in after-hours trading.

That was explained, analysts suggested, by Meta's forecasts for first-quarter revenue.

They came in above Wall Street estimates, signalling a rebound in demand for digital ads after months of weak sales.


Mark Zuckerberg says 2023 will be the 'year of efficiency' at Meta

Firms in the tech space suffered a rout in their market value last year as consumer and business spending became strained by high inflation and the wider economic slowdown.

Meta, along with rivals, moved to bolster profitability through aggressive cost-cutting.

It revealed 11,000 job cuts in November after coming under pressure from investors following two consecutive quarters of falling revenue.

Those costs were booked in the final quarter of 2022 and culminated in the slump in profits.

Meta said on Wednesday it expected a further $1bn charge related to its "efficiency" programme over the course of 2023.

Greater competition from the likes of TikTok has also eaten into its space.

But Meta founder and chief executive Mark Zuckerberg stuck to his guns on one big bet - pledging to maintain investment in its virtual and augmented reality division Reality Labs, despite shareholder unease over the prospects for metaverse applications.

The results statement revealed an operating loss of more than $4bn for Reality Labs over the three months to December alone. It took the figure for 2022 as a whole above $13.7bn.

Zuckerberg said of the performance: "Our community continues to grow and I'm pleased with the strong engagement across our apps.

"Facebook just reached the milestone of two billion daily actives.

"The progress we're making on our AI discovery engine and Reels are major drivers of this.

"Beyond this, our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organisation."
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
×