Meta is cutting hiring and expenses as the social media platform forecasts continuing weak advertising demand driven by economic uncertainty to continue.
This follows weaker advertising growth reported by Snap, Twitter and Google’s parent Alphabet.
Meta, formerly Facebook, released its June quarter results with revenue down 1% to $US28.822 billion, below analyst expectations.
Net income fell 37% to $US6.687 billion.
Meta expects third quarter 2022 total revenue to drop further, in the range of $26 billion-$28.5 billion.
CFO David Wehner: ”This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.
“We also anticipate third quarter Reality Labs revenue to be lower than second quarter revenue.
“We have reduced our hiring and overall expense growth plans this year to account for the more challenging operating environment while continuing to direct resources toward our company priorities.”
Founder and CEO Mark Zuckerberg: "It was good to see positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI.
"We're putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services."
June quarter 2022 numbers:
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