Arab Press

بالشعب و للشعب
Tuesday, Apr 23, 2024

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Shares climb in after-hours deals as the company's forecasts for revenue in the current quarter suggest the ad downturn may be easing at a time when Meta places a greater focus on efficiency.

Facebook's parent firm recorded a 55% drop in profits during the final quarter of 2022 - the result of a $4.2bn restructuring charge that included the cost of thousands of job cuts.

Meta Platforms, which also includes WhatsApp and Instagram in its stable, said its net income profit measure slumped to $4.65bn between October and December.

That was down from a figure above $10bn during the same period in 2021.

However, its quarterly revenue, ad revenue and Facebook's daily active user measures all beat market expectations.

Users of its platforms, taken together, were up 4%, with Facebook's alone hitting two billion.

Shares, down by about 60% from their September 2021 peak at the market close, were up by more than 12% in after-hours trading.

That was explained, analysts suggested, by Meta's forecasts for first-quarter revenue.

They came in above Wall Street estimates, signalling a rebound in demand for digital ads after months of weak sales.


Mark Zuckerberg says 2023 will be the 'year of efficiency' at Meta

Firms in the tech space suffered a rout in their market value last year as consumer and business spending became strained by high inflation and the wider economic slowdown.

Meta, along with rivals, moved to bolster profitability through aggressive cost-cutting.

It revealed 11,000 job cuts in November after coming under pressure from investors following two consecutive quarters of falling revenue.

Those costs were booked in the final quarter of 2022 and culminated in the slump in profits.

Meta said on Wednesday it expected a further $1bn charge related to its "efficiency" programme over the course of 2023.

Greater competition from the likes of TikTok has also eaten into its space.

But Meta founder and chief executive Mark Zuckerberg stuck to his guns on one big bet - pledging to maintain investment in its virtual and augmented reality division Reality Labs, despite shareholder unease over the prospects for metaverse applications.

The results statement revealed an operating loss of more than $4bn for Reality Labs over the three months to December alone. It took the figure for 2022 as a whole above $13.7bn.

Zuckerberg said of the performance: "Our community continues to grow and I'm pleased with the strong engagement across our apps.

"Facebook just reached the milestone of two billion daily actives.

"The progress we're making on our AI discovery engine and Reels are major drivers of this.

"Beyond this, our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organisation."
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×