Facebook’s second quarter report shows that it has experienced its first yearly revenue decline.
The company has seen consistent growth for up to a decade, but that has now come to an end after the firm announced its revenue had fallen by 1% to $28.8 billion. But the third quarter could be even worse if forecasts are correct.
For parent company Meta, profit fell 36% to $6.7 billion during the second quarter, indicating that Mark Zuckerberg’s fascination with the metaverse could be coming back to bite him.
In addition to his metaverse aspirations, Meta has also run into roadblocks after Apple introduced a new privacy setting that would allow users to block apps from tracking their data — a critical component of Meta’s revenue.
Despite Meta’s falling revenue, Facebook actually reported an increase in its daily usership after it experienced a decline several months ago.
However, Meta recently made it clear that the company is open to conducting layoffs after encouraging managers to review and exit “low-ranking” workers.
“This is a period that demands more intensity, and I expect us to get more done with fewer resources,” said Zuckerberg. “I think we’re going to come through this period as a stronger and more disciplined organization.”