Meta is in the midst of the biggest crisis of its 18-year existence. The company’s value has fallen 70 percent in the past year. Last week, Mark Zuckerberg laid off 11,000 employees. More cost-cutting measures and job cuts are likely to follow if Meta’s situation doesn’t improve.
There are many reasons for Meta’s downturn: The weakening global economy, Apple’s anti-tracking measure, and strong competition from TikTok are putting pressure on the ad business. On top of that, user numbers on Facebook, Instagram and WhatsApp are not growing as fast as they did in the early years.
And then there’s the gigantic Metaverse project, which gobbles up double-digit billions every year and is not expected to generate profits until the next decade.