In the next few months, Meta will cut costs by 10% or more. Some positions will be shed in the process of business restructuring, which is also one of the measures to cut costs. The second-quarter earnings report released in July showed that Meta's costs increased 22% year-on-year to a total of $20.4 billion. To spur growth, Meta has invested heavily in the Metaverse, but so far nothing has returned. Not only that, revenue in the second quarter also declined year-on-year, and Meta also expects a decline in the third quarter.
Meta's chief product officer, Chris Cox, has told employees that the company is in a difficult time, with strong headwinds. Cox also said the team shouldn't expect a lot of new hires and bigger budgets at this point in the company's pursuit of better execution in a slowing growth environment.
Apple's enhanced iOS privacy features hit Meta's advertising business, and TikTok's strong attack made Meta worse. Besides Meta, Snap, Twitter, and Pinterest also face the same challenges.
Meta shares have fallen 56% so far this year, while the S&P 500 is down less than 20% and the Nasdaq is down about 26%.