(Boursier.com) — The Nasdaq clearly did not have a party in 2022. With a drop of more than 30%, the flagship American technology index suffered greatly from the radical change in the behavior of central banks in the face of the outbreak. inflation, and ultimately the rise in interest rates. Among the featured companies in the index, Meta is the one who suffered the most. The title of Mark Zuckerberg’s company has indeed lost more than 60% since January 1, bringing the capitalization of the Menlo Park firm to less than 315 billion dollars.
Faced with the fall in its advertising revenues in a less buoyant economic environment, privacy changes led by Apple, increased competition, and a strategy sometimes considered risky, the former Facebook announced last month the first major social plan in its history: the group will cut 13% of its workforce, which represents more than 11,000 jobs. Mark Zuckerberg himself admitted to having made mistakes. In addition to these staff cuts, Meta will reduce its discretionary spending and extend the parallel recruitment freeze in the first quarter of 2023.
The company also pays for its heavy investments in the metaverse. Investors are still desperately awaiting the first positive returns from this activity in which the Californian company has already invested billions of dollars. Finally, everyone will have noticed the loss of speed of the social network. The phenomenal success of TikTok with teenagers and, now, with more and more older users, is no stranger to this.
2023 is not going to be an easy year for Mark Zuckerberg and his teams.