The meta has experienced exceptional growth over the past two years. But 2022 is off to a bad start for Mark Zuckerberg’s company. In April, the group presented its financial results for the first quarter. And these weren’t good. Indeed, the company’s profit fell by 21%, while revenue from $27.9 billion grew by only 7% (too slow growth for Meta). Therefore, faced with this situation, Zuckerberg announced that son the company was going to cut its costs. And, presumably, as part of these cost cuts, the group will stop recruiting before the end of the year. According to a Business Insider article, Chief Financial Officer David Vener made the announcement in a memo sent to employees. “While we are optimistic about the opportunities ahead, we need to ensure targeted and balanced investments to support our most strategic priorities. We are facing headwinds, including slower-than-expected revenue growth earlier in the year,” Vemer said in a statement. He would attribute this situation to changes in iOS, the war in Ukraine and the macroeconomic environment in general. In addition, growth is slowing as people return to normal and spend less time online. As a reminder, for iOS, Apple has announced a new feature called ATT or Application Tracking Transparency in 2020. Rolled out in 2021, it requires apps to ask for user permission, via box dialoguebefore accessing the IDFA ID. However, this identifier is a tool that apps and advertisers use to display relevant ads based on user interests. Meta opposed the introduction of this feature on iOS. And when he arrived, the group began to discuss the impact on his income. In any case, despite this situation, the Meta remains optimistic and is already talking about how the group can accelerate its growth again. According to a Business Insider post on iOS, Meta is considering introducing artificial intelligence into son advertising system to compensate for the loss of signals (signals used for advertising) due to changes in iOS. In any case, the fact that the Meta calls these changes one of the main causes his poor performance demonstrates the effectiveness of the measures taken by Apple. And the group may not have exhausted its problems, since, since son On the other hand, Google is also considering banning individual tracking for advertising purposes on Android. Until then, though, Mountain View will have to come up with a technology that will combat tracking while allowing developers to continue monetizing their apps.
The meta is forced to slow down recruiting in cause loss of revenue growth
At the start of the year, the Meta planned a massive recruitment effort. “We entered 2022 with really aggressive growth targets and have been hiring at an incredible pace so far – we hired more engineers in the first quarter than in all of 2021,” a Financial from Meta manager reportedly explained to employees. But cause headwind, the group will revise its recruiting ambitions downward before the end of the year. Vemer also reportedly warned that these changes would affect all teams in the group. ” […] it will be an opportunity to reprioritize work to make sure we are all focused on the most important things and top business priorities,” the CFO also reportedly wrote in the memo. In addition, Meta will also review its workforce distribution to ensure it is in line with the group’s priorities.