London Daily

Focus on the big picture.
Sunday, Sep 28, 2025

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Facebook parent Meta reveals 55% drop in profits after mass layoffs

Shares climb in after-hours deals as the company's forecasts for revenue in the current quarter suggest the ad downturn may be easing at a time when Meta places a greater focus on efficiency.

Facebook's parent firm recorded a 55% drop in profits during the final quarter of 2022 - the result of a $4.2bn restructuring charge that included the cost of thousands of job cuts.

Meta Platforms, which also includes WhatsApp and Instagram in its stable, said its net income profit measure slumped to $4.65bn between October and December.

That was down from a figure above $10bn during the same period in 2021.

However, its quarterly revenue, ad revenue and Facebook's daily active user measures all beat market expectations.

Users of its platforms, taken together, were up 4%, with Facebook's alone hitting two billion.

Shares, down by about 60% from their September 2021 peak at the market close, were up by more than 12% in after-hours trading.

That was explained, analysts suggested, by Meta's forecasts for first-quarter revenue.

They came in above Wall Street estimates, signalling a rebound in demand for digital ads after months of weak sales.


Mark Zuckerberg says 2023 will be the 'year of efficiency' at Meta

Firms in the tech space suffered a rout in their market value last year as consumer and business spending became strained by high inflation and the wider economic slowdown.

Meta, along with rivals, moved to bolster profitability through aggressive cost-cutting.

It revealed 11,000 job cuts in November after coming under pressure from investors following two consecutive quarters of falling revenue.

Those costs were booked in the final quarter of 2022 and culminated in the slump in profits.

Meta said on Wednesday it expected a further $1bn charge related to its "efficiency" programme over the course of 2023.

Greater competition from the likes of TikTok has also eaten into its space.

But Meta founder and chief executive Mark Zuckerberg stuck to his guns on one big bet - pledging to maintain investment in its virtual and augmented reality division Reality Labs, despite shareholder unease over the prospects for metaverse applications.

The results statement revealed an operating loss of more than $4bn for Reality Labs over the three months to December alone. It took the figure for 2022 as a whole above $13.7bn.

Zuckerberg said of the performance: "Our community continues to grow and I'm pleased with the strong engagement across our apps.

"Facebook just reached the milestone of two billion daily actives.

"The progress we're making on our AI discovery engine and Reels are major drivers of this.

"Beyond this, our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organisation."
Newsletter

Related Articles

0:00
0:00
Close
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
Explosive Email Shows Sarah Ferguson Begged Forgiveness from Jeffrey Epstein After Taking His Money
Corrupt UK Politician Ed Davey Demands Elon Musk’s Arrest for Supporting Democracy
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
Alibaba Debuts Open-Source Deep Research Agent with Benchmarks Rivaling OpenAI
Marcos Faces Legacy-Defining Crisis as Flood Projects Scandal Sparks Massive Tide of Protests
China’s Micro-Drama Boom Turns Stalled Real Estate Projects into Lavish Film Sets
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
'Company Got 5,189 H-1B Visas, Then Laid Off 16,000 Americans': US Defends New $100,000 H-1B Visa Fee
Golf legend tells Omar she should be 'sent back to Somalia' after her Kirk comments
EU Set to Bar Big Tech from New Financial Data Access Scheme
China Bans Livestreaming and AI in Religion Amid Crackdown on Shaolin Temple Scandal
×