Beautiful Virgin Islands

Friday, May 09, 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
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
×