Social Media: Austerity Measures in Meta-Economy

The Facebook group Meta is facing austerity measures after the weakening of its business. Founder and boss Mark Zuckerberg prepared the employees in an internal question and answer session for a hiring freeze and budget cuts in some areas, such as the financial service Bloomberg reported on Thursday (local time). Meta will be smaller in 2023 than this year, Zuckerberg said. In the last quarter, Meta posted the first drop in sales since the Facebook group went public in 2012. Management referred, among other things, to concerns about the economy and inflation, which made advertisers more frugal. At the same time Facebook and Instagram to create competition from the video app Tiktok – and Apple’s measures to improve privacy protection on the iPhone also messed up the business model. At the same time, the focus on virtual worlds – the “metaverse” – entails development costs in the billions. According to Bloomberg, Zuckerberg said he had hoped that the economy would have stabilized more in the meantime. But since it doesn’t look like it, Meta wants to plan more carefully. There should be budget cuts across various areas. Meta had grown rapidly in recent years, including to meet security and hate speech filtering requirements. As of June 30, the Group had 83,553 employees compared to 63,404 a year earlier.

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