At a company-wide meeting on Thursday, Meta chief executive Mark Zuckerberg admitted he was optimistic about the company’s growth after the huge profits it made during the pandemic era.
As a result, the company took several measures that are the subject of debate today, including aggressive hiring and ignoring the possibility of an economic downturn.
Meta is facing several challenges, in particular persistent inflation around the world that has forced advertisers to cut spending. As ads remain the largest source of revenue for Meta, the company now faces a long ride as it explores strategies to attract advertisers.
Apple’s new policies, which prevent social media platforms and other apps from tracking user data, have also dealt a major blow to companies, particularly Meta, which has always been in the business of tracking user data.
Due to the ongoing crisis, Meta recorded the first ever quarterly decline and forecast a further failure in the third quarter.
During an investor call, Zuckerberg said he believed the economy was entering a downturn that would have a “broad impact” on the digital advertising business. He also told investors that the company planned to “steadily reduce headcount growth” over the next year.
The sources for this piece include an article in Reuters.