Beautiful Virgin Islands

Tuesday, Jun 03, 2025

0:00
0:00

Mark Zuckerberg warns many teams will ‘shrink’ as Meta revenue drops

Meta CEO Mark Zuckerberg said Wednesday that he expects to trim the workforce at the parent of Facebook and Instagram after announcing the first-ever decline in revenue.

“This is a period that demands more intensity and I expect us to get more done with fewer resources,” Zuckerberg told analysts.

The Facebook founder said that because the digital advertising business has taken a hit, “teams are going to shrink so we can shift energy to other areas inside the company.”

Shares of Meta sank by nearly 8.5% in early trading on Wall Street on Thursday.

Meta, which also owns WhatsApp, reported $28.82 billion in revenue for the second quarter, a 1% decline compared to the same period a year ago.

It fell short of the $28.94 billion that Wall Street analysts expected the company to generate in revenue, according to CNBC.

Net income also fell by 36% compared to the previous quarter. The company reported profits of $6.7 billion in the second quarter.

The company said the disappointing results were due to a “continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.”

“We seem to have entered an economic downturn that will have a broad impact on the digital advertising business,” Zuckerberg said.

“We’re slowing the pace of [our] investments and pushing some expenses that would have come in the next year or two off to a somewhat longer timeline.”

Facebook’s growth has been hindered by TikTok, the ByteDance-owned video-sharing app that has attracted hundreds of millions of users worldwide, particularly among younger people.

Meta has introduced changes to Instagram in hopes of mimicking TikTok’s success, including promoting more content from users who are outside one’s circle of friends.

Zuckerberg said the company’s digital advertising business, a main engine of revenue, has slowed in recent months.


Instagram will automatically have almost all video posts less than 15 minutes long be shared in the Reels format. That means there will be no difference between Reels and video posts.

Instagram will also allow people to use any public posts in their own Reels. Prior to the change, users were only able to remix Reels.

While Facebook and Instagram have historically connected people to content produced by their friends, the video-based TikTok relies on algorithmic signals and viral content to show viewers highly engaging posts, without having to rely on someone’s network of friends or connections.

The changes introduced by Meta were not well received by some celebrity users of Instagram, including Kim Kardashian and Kylie Jenner.

Zuckerberg’s frustration over the fierce economic headwinds that are slowing his company’s growth was evident during a recent virtual Q&A with employees, one of whom asked the Meta boss about taking more vacation days.

During a June 30 virtual session, Zuckerberg reportedly “appeared visibly frustrated” after one Chicago-based employee asked whether “Meta Days,” or extra time off introduced during the COVID-19 pandemic, would continue in 2023.

“Um … all right,” Zuckerberg said after hearing the pre-recorded question, according to a recording obtained by The Verge. “Given my tone in the rest of the Q&A, you can probably imagine what my reaction to this is.”

Meta got more bad news on Wednesday after the Federal Trade Commission blocked the company from acquiring virtual reality firm Within Unlimited and its fitness app, Supernatural.

The FTC said that the deal would hurt competition and violate antitrust laws.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×