Moreover, Meta plans to hire more employees for specialized, higher-cost technical roles essential for the creation of these products.Īs for AI, Meta has adopted a distinctive approach compared to other major tech companies. ![]() The bulk of these resources will be allocated to expanding the company’s technological infrastructure to support the development of complex AI and VR tools. Looking ahead to 2024, Meta foresees expenses rising to a range between $94 billion and $99 billion. The company posted third-quarter earnings per share of $4.39, a significant improvement from $1.64 in the preceding year. This cost-cutting approach has helped Meta increase its operating margins from 20 per cent in the same period the previous year to an impressive 40 per cent. On Wednesday, the tech giant revised its spending projections for 2023 to a range of $87 billion to $89 billion. Investors have also closely monitored Meta’s investments in projects related to virtual reality and artificial intelligence technology. For many it represents an overly-ambitious gear shift from one version of the internet to another.However, advertisers are taking some time to adapt to this new format, which has implications for the company’s revenue outlook for 2024, a point of concern for Chief Financial Officer Susan Li. But rather than focus on the evolution of the internet, Meta has tried to sell in a revolution. ![]() While we know that Meta needed to protect itself from the negative reputation surrounding Facebook, it was also motivated by a shift toward virtual reality (VR). “It brings into question the research that informed the rebranding last year. “Meta bet big on the metaverse, but its vision for the future of the internet may be too far flung for the average consumer and advertiser,” Thomas Walters, founder and chief executive of global creative agency Billion Dollar Boy, said in a statement. Zuckerberg has not given any signal that he intends to roll back his expensive ambitions for the metaverse only time will tell whether this is a catastrophic misjudgment of public interest, or a prescient long-term strategy that ultimately pays off. “This is not a reflection of the great work these groups have done, but what we need going forward.” The recruiting team “will be disproportionately affected since we’re planning to hire fewer people next year,” Zuckerberg wrote, as will the business teams. Layoffs are being made across the company’s Family of Apps and Reality Labs quadrants. ![]() In his letter to employees, Zuckerberg wrote that the severance packages for those who are laid off will include 16 weeks of base pay plus two additional weeks for every year of employment with the company, as well as six months of healthcare coverage, shares that were slated to vest on the 15th and other resources. In October, one prominent investor wrote in an open letter to Zuckerberg that Meta’s investments of $10bn to $15bn per year in metaverse-related projects, which by the company’s own estimation could take as long as a decade to come to fruition, “is super-sized and terrifying, even by Silicon Valley standards.” The author of that letter suggested that the company reduce its metaverse expenditures to a cap of $5bn per year. Shareholders have recently begun to voice their discontent about the direction in which Zuckerbeg has been steering the ship. Facebook, founded in 2004, changed its name to Meta in October 2021 to signal the company's new focus on the metaverse.
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