Facebook parent Meta has reportedly warned its employees that the company will continue to experience challenges related to its core online advertising business amid a weak economy and expects a very difficult second half of the year.
Meta Chief Product Officer Chris Cox detailed the company’s current financial woes in an internal memo. A Meta spokesperson confirmed to Reuters that the memo detailed key areas in which the company plans to invest.
Cox reiterated a statement made by Meta CEO and co-founder Mark Zuckerberg during a post-Q1 earnings call with analysts, detailing how Apple’s privacy updates to the iPhone last year have affected Meta. negative impact on business.
The executive added that the company is in a “severe crisis period and is facing enormous difficulties,” stressing that the challenges facing the company are unlikely to disappear anytime soon.
Cox said in the memo that the company needs to execute strategy flawlessly in a slowing growth environment. Teams should not expect a large number of new engineers and budget commitments, and must focus more on priorities, deliberately measuring which work can have an impact, and in the company Internally invest in developer efficiency and speed and run leaner, more efficient teams.
Apple’s new privacy policy limits Facebook’s ability to serve ads to specific audiences. To offset the impact, Cox said the company is making a big push into the profitability of Instagram Reels, which targets short-video app TikTok. At the same time, as the company has previously said, they are also investing in artificial intelligence to drive accurate content recommendations like TikTok.
Meta also plans to invest in features that will make it easier for retailers to display ads to customers on its app, as well as enhance communications between employees and businesses.
A Meta spokesperson downplayed the importance of the internal memo to Reuters, noting: “This is just an internal strategy memo to reiterate the challenges and opportunities that were stated in the earnings report. Based on this, we will Put more energy into solving those problems.”
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