The company has seen its stock price plummet by more than 70% this year, making investors wary of making large investments in overwhelming Metaverse products that could take years to generate returns. I’m here. And while Meta remains a social media juggernaut, it faces stiff competition from fast-rising rival TikTok and apple device.
According to leaked documents, even some Meta employees who work on Metaverse products aren’t impressed with them. To comment“An empty world is a sad world.” Investor pressured CEO Mark Zuckerberg scaled back his company’s investment in the metaverse, to no avail.
Zuckerberg believes the Metaverse is the future of the company and says it will require more than $10 billion in annual investment. The effort has cost him $15 billion since the beginning of last year, according to the company. journal. Meta’s rapid spending growth has reduced free cash flow by 98% in the most recent quarter.
Facebook layoffs follow more serious layoffs twitternew owner Elon Musk tweeted on Friday, claiming, “When the company is losing over $4 million, you have no choice.”
Meta’s woes this year caught many investors off guard. Among them is CNBC’s versatile host Jim Cramer. slippingtold viewers several times earlier this year that he expects Meta’s share to rise again. said in a dark tone“I made a mistake here. I was wrong. I trusted this management. It was unwise. The arrogance here was extraordinary and I apologize.”
Adding to the company’s woes, its reputation took a hit last month. fines of about $25 million In a news release, Facebook said: But that wasn’t enough. Facebook argued in court that these laws should be declared unconstitutional. It’s breathtaking. ”
August, Zuckerberg Explained by podcaster Joe Rogan What is it like to lead a company? “Every morning I wake up and it’s like I’ve been punched in the stomach. I wake up in the morning and I look at my phone and I see a million messages. to book.”
Meta employees won’t be surprised at all by layoffs. Company officials recently told employees to cancel non-essential business trips. In June, Mr. Zuckerberg told employees at an all-hands meeting, “Realistically, there are probably a lot of people in the company who shouldn’t be here.”
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