London Daily

Focus on the big picture.
Monday, Jun 30, 2025

0:00
0:00

Mark Zuckerberg warns many teams will ‘shrink’ as Meta revenue drops

Meta CEO Mark Zuckerberg said Wednesday that he expects to trim the workforce at the parent of Facebook and Instagram after announcing the first-ever decline in revenue.

“This is a period that demands more intensity and I expect us to get more done with fewer resources,” Zuckerberg told analysts.

The Facebook founder said that because the digital advertising business has taken a hit, “teams are going to shrink so we can shift energy to other areas inside the company.”

Shares of Meta sank by nearly 8.5% in early trading on Wall Street on Thursday.

Meta, which also owns WhatsApp, reported $28.82 billion in revenue for the second quarter, a 1% decline compared to the same period a year ago.

It fell short of the $28.94 billion that Wall Street analysts expected the company to generate in revenue, according to CNBC.

Net income also fell by 36% compared to the previous quarter. The company reported profits of $6.7 billion in the second quarter.

The company said the disappointing results were due to 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 seem to have entered an economic downturn that will have a broad impact on the digital advertising business,” Zuckerberg said.

“We’re slowing the pace of [our] investments and pushing some expenses that would have come in the next year or two off to a somewhat longer timeline.”

Facebook’s growth has been hindered by TikTok, the ByteDance-owned video-sharing app that has attracted hundreds of millions of users worldwide, particularly among younger people.

Meta has introduced changes to Instagram in hopes of mimicking TikTok’s success, including promoting more content from users who are outside one’s circle of friends.

Zuckerberg said the company’s digital advertising business, a main engine of revenue, has slowed in recent months.


Instagram will automatically have almost all video posts less than 15 minutes long be shared in the Reels format. That means there will be no difference between Reels and video posts.

Instagram will also allow people to use any public posts in their own Reels. Prior to the change, users were only able to remix Reels.

While Facebook and Instagram have historically connected people to content produced by their friends, the video-based TikTok relies on algorithmic signals and viral content to show viewers highly engaging posts, without having to rely on someone’s network of friends or connections.

The changes introduced by Meta were not well received by some celebrity users of Instagram, including Kim Kardashian and Kylie Jenner.

Zuckerberg’s frustration over the fierce economic headwinds that are slowing his company’s growth was evident during a recent virtual Q&A with employees, one of whom asked the Meta boss about taking more vacation days.

During a June 30 virtual session, Zuckerberg reportedly “appeared visibly frustrated” after one Chicago-based employee asked whether “Meta Days,” or extra time off introduced during the COVID-19 pandemic, would continue in 2023.

“Um … all right,” Zuckerberg said after hearing the pre-recorded question, according to a recording obtained by The Verge. “Given my tone in the rest of the Q&A, you can probably imagine what my reaction to this is.”

Meta got more bad news on Wednesday after the Federal Trade Commission blocked the company from acquiring virtual reality firm Within Unlimited and its fitness app, Supernatural.

The FTC said that the deal would hurt competition and violate antitrust laws.

Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×