- by GI Magazine
- Oct 04, 2022
July 30, 2022 6:52 AM (Reuters) - CEO of Meta Platforms Inc. (META.O) Mark Zuckerberg informed employees that the world's largest social media firm had too optimistic development plans as they believed that a spike in usage and revenue growth during COVID-19 lockdowns would continue. On Thursday, Zuckerberg responded to a question from a worker during a company-wide meeting. He said that the company had hired too quickly, as they had not planned for the prospect of an economic slowdown.
The remarks were sharper than Zuckerberg had made on the day when an investor called when Facebook-owned Meta reported its first-ever quarterly revenue decline and predicted a further downfall in the third quarter. Zuckerberg stated on the investor call that he thought the economy was about to enter a recession and would have a "wide impact" on the digital advertising industry. Even while it's always challenging to predict how deep and how long these cycles would run, the situation feels worse than it was a quarter ago, he continued. Although, the source claims that investors knew about the company's expected steady curb headcount expansion over the future.
According to Reuters, about the continuing discussion about the term "coasting," an employee at the company meeting on Thursday asked Zuckerberg if senior managers at Meta had been underperforming. This executive earlier this month had instructed managers to "move to depart" any underperforming or "coasting" staff. According to the individual who heard him speak and another person who was aware of the reply, Zuckerberg answered by talking about Meta's performance reports generically. The employee who asked the inquiry later posted in the internal message board's comments section that, in his opinion, Zuckerberg had not addressed his query.
The discussions engaged as Zuckerberg dealt with growing morale problems at Meta, including financial difficulties and competition from Apple Inc. (AAPL.O) and ByteDance's TikTok. In this company-wide meeting last month, Zuckerberg warned staff that he wanted them to work with greater intensity as he lowered hiring goals and raised previously loose performance criteria. Employees at Meta, who receive some of their pay in stock units like tech workers, effectively had their pay cut this year as the stock price dropped following reports of stalled growth, says the source.