Facebook-parent Meta reported Wednesday that its profit more than halved to $4.4 billion in the third quarter from $9.2 billion a year earlier, and said it plans “significant changes” to bolster efficiency in a tough economic environment, IgbereTV reports
The social networking giant, which faces stagnating user numbers and cuts in advertising budgets, also said revenue slipped to $27.7 billion from $29 billion a year earlier.
“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,” said Meta chief Mark Zuckerberg.
Meta shares plunged 19.1 percent to $105 in after-market trades, the price less than a third of what it was at the start of this year.
“While we continue to navigate some challenging dynamics – a volatile macro economy, increasing competition, ad signal loss and growing costs from our long term investments — I have to say that our product trends look better from what I see then some of the commentary I’ve seen suggests,” Zuckerberg told analysts on an earnings call.
The number of monthly active users at Facebook was up just two percent to 2.96 billion at the end of September, Meta reported.
Meanwhile, the number of employees at the tech titan tallied 87,314, a 28 percent increase from a year earlier, the earnings report stated.
“We are making significant changes across the board to operate more efficiently,” Meta said in the release.
The Silicon Valley-based tech firm said that it expects to hold headcount levels in check over the next year.
Zuckerberg said that while tightening its belt, Meta will focus on its artificial intelligence that powers recommendations at offerings such as short-form video feature Reels, as well as ad messaging platforms and its vision for the metaverse.
– Apple squeeze –
Big tech platforms have been suffering from the economic climate, which is forcing advertisers to cut back on marketing budgets, and Apple’s data privacy changes, which have reduced leeway for ad personalization.
