As per an internal document distributed to workers this week, Meta Platform Inc (NASDAQ: META) is planning for a leaner 2H 2022 and warned of severe times. Chris Cox, the company’s chief product officer, wrote the message outlining the company’s aims and upcoming commercial problems.
Meta warns of tough times in 2H 2022
Cox wrote in the memo, “I have to underscore that we are in serious times here and the headwinds are fierce. We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets.”
According to Cox’s memo, which was originally published by Reuters, macroeconomic constraints and privacy restrictions that harm Meta’s ad business provide the largest revenue challenges. Cox said that Reels, the company’s short-form video TikTok replica, is being monetized “as rapidly as feasible.”
Additionally, Cox identifies six key areas where he thinks Facebook needs to increase its investments. These include the development of metaverse products, Artificial Intelligence, messaging, the continued promotion of Reels, monetization, and compliance with new privacy laws. Without the assistance of more people or funding, Cox asserts that teams will need to “prioritize more brutally.”
Meta is looking to generate revenue through advertising
The present macroeconomic environment and signal loss remain to be Meta’s main revenue impediments, but there is potential to make a huge investment in confronting those problems head-on. The two main objectives for Ads are to monetize Reels as soon as possible and to make investments in AI, which will remain to be a significant source of growth for the company. The most significant new revenue-growth opportunity will be in business messaging.
Meta had previously informed the staff that there would be a slowdown. The business stopped hiring in May for a number of departments, including those responsible for developing products for online shopping and video conferencing. Investors’ concerns over the company’s stalling development and costly expenditures in the metaverse that might take years to pay off have caused a collapse in the stock price during the previous five months.
