He’s getting away from “managers managing managers”
It turns out that Wall Street loves austerity these days. Meta’s stock price shot up nearly 20 percent after its earnings report was released with Zuckerberg’s commentary. The company took a one-time $4.2 billion charge related to the layoffs, the canceling of some building leases, and the backing out of costly data center projects. It also hinted that more layoffs could be on the horizon in its: “We may incur additional restructuring charges as we progress further in our efficiency efforts.
“I don’t think you want a management structure that’s just managers managing managers, managing managers, managing managers” Meta’s core business of serving ads remains challenged, with overall revenue declining by one percent in 2022 compared to 2021. But Zuckerberg struck an optimistic tone on the earnings call, saying that commentary about the company is lagging behind the progress he is seeing internally on key initiatives like the performance of Reels.
And for all the doom and gloom about the slow decay of Facebook itself, the numbers tell a different story; daily users hit a staggering two billion in the fourth quarter for the first time.“We’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial,” Zuckerberg said. For now, that doesn’t apply to his metaverse efforts, which remain as costly as ever.
Since Facebook rebranded to Meta in the fall of 2021, investors have grown increasingly worried that Zuckerberg is spending on his metaverse dreams with reckless abandon and little to show for it. That could still be true. But with this new “efficiency” push, he may be able to get away with it.
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