Shulou(Shulou.com)11/24 Report--

CTOnews.com, May 27 / PRNewswire-FirstCall-Asianet /-- Meta (formerly Facebook) recently released its results for the fourth quarter and full year of 2022. Although its revenue and net profit exceeded market expectations and its share price rose the most in a single day, the company's advertising business was hit by Apple's privacy policy and competitors. Revenue and net profit fell year-on-year, while costs and expenses rose sharply. At the same time, the company's investment in the meta-universe failed to bring considerable income, but led to huge losses.

To deal with this dilemma, Meta CEO Zuckerberg asked employees to be "more agile" at an internal company meeting and declared 2023 a "year of efficiency". He said the company would restructure its departments and cut jobs, cut lower-priority projects, accelerate decision-making efficiency, reduce costs and cut benefits. He also said that the company will continue to innovate and invest in artificial intelligence and meta-universe to achieve its long-term development goals.

Meta has made two rounds of layoffs since last year: 11000 in November and another 10000 in March. All of these layoffs are part of a broader restructuring by Zuckerberg to achieve greater efficiency.

According to the Bloomberg Billionaires Index, some of these measures have been reflected in the company's strong stock performance, increasing Zuckerberg's net worth by $46.6 billion this year to $92.3 billion (CTOnews.com Note: currently about 652.561 billion yuan).

Meta is the world's largest social media company, with Facebook, Instagram, WhatsApp and other well-known applications. The company's main source of revenue is advertising, which accounts for 97% of total revenue. However, in 2022, the company's advertising business encountered unprecedented challenges. On the one hand, Apple has changed its policy on the use of its products and data, limiting advertising positioning and suppressing advertising pricing; on the other hand, social media platforms such as TikTok, Google and YouTube are increasingly competitive.

In order to get rid of its over-reliance on advertising, Meta changed its name and announced its move into meta-universe in the second half of 2021. Zuckerberg believes that meta-universe is the future trend of the web3.0 era, and it is also a strategic choice for Meta to achieve the commanding heights of social traffic entry.

However, in the case of immature technology, industry and business model, the "all in" meta-universe seems to be pushing too hard. For the whole of 2022, Meta spent $13.717 billion on meta-universe, but generated only $2.159 billion in revenue. This also makes investors question the clarity and feasibility of the transformation path of Meta.

In an earnings call earlier this year, Zuckerberg hinted that he would cut management levels to make the organization leaner and day-to-day operations more efficient.

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