Mark Zuckerberg built a digital empire with Facebook.
But cracks are beginning to show in the Big Tech juggernaut.
And he just suffered a massive defeat that he never saw coming.
Facebook has been one of the biggest players in Silicon Valley since the company first went public in 2012.
Mark Zuckerberg rebranded Facebook into Meta as he plots to conquer the virtual world, he dubs the “metaverse.”
Back in the real world, his rebranded company is facing major problems.
Earlier in the year Facebook reported that it lost daily active users for the first time in its history.
People are leaving the social media giant after years of mismanagement.
Conservatives are abandoning the platform after its relentless censorship against them.
Young people are spurning Facebook in favor of newer social media platforms like TikTok.
As a result, the company’s stock price has been hammered this year, dropping from over $344 per share to now less than $200 which represents about a 40% decline in value.
The company lost $70 billion in value in the span of three days during a brutal stretch of trading recently.
Zuckerberg has personally lost billions of dollars as shares of his company tanked.
With the company taking a massive financial hit, a leaked internal memo shows the desperate measures Facebook is taking in response.
According to a memo obtained by Business Insider, the company is planning a major cost-cutting operation in response to the financial turmoil.
Facebook is undertaking a major hiring freeze that will affect “almost every team across the company.”
Because of “slower revenue growth than anticipated” the company is abandoning the hiring goals it set at the beginning of the year.
The company is also “reviewing headcount” on various projects to make sure it’s aligned with top priorities.
Chief Financial Officer David Wehner described these cost-cutting measures as a “reprioritization” moving forward.
The memo was sent to Facebook employees from top executives in the company.
This is a major setback for a company that was once the darling of Silicon Valley.
This setback comes while Zuckerberg is in the middle of a major pivot towards the metaverse.
Zuckerberg has been described as obsessively focused on building up his new venture in the virtual world.
Now with less new talent, his plans to grow the Meta side of the company could take a hit.
The reason for Facebook’s losses cited in the memo were the Russia-Ukraine conflict, changes with Apple policy and the “general macroeconomic environment.”
After going all-in for Joe Biden during the 2020 election, Zuckerberg is paying the price for supporting an incompetent socialist.
While Facebook is blaming factors out of their control for their losses, they’re ignoring one of their biggest problems.
The company did everything in its power to alienate conservatives and it appears to be hurting Facebook’s bottom line.
With Facebook’s dominance fading, this could lead to some real soul searching about its future.
Stay tuned to Unmuzzled News for any updates to this ongoing story.