Meta weighing additional job cuts: Report

Dan, while we have you here, there's another story that we are watching and it has to with Metta. The Washington Post just out with a story saying that Metta is going to be announcing yet more job cuts after it already cut substantially. What have you been hearing in terms of chatter about what Metta is going to need to do on this front? Yeah, people inside have already been kind of aware of this. Their ears are on, you know, like perked up. They're on alert as to whether or not they're going to be losing their jobs or they're going to be able to hold on to them. And this is part of this year of efficiency that Mark Zuckerberg had laid out during Metta's latest earnings call. It's all about kind of making the company leaner and ensuring that, look, while they continue to invest in the Mettaverse, something that investors are for sure wary about, they want to ensure that they're also cutting back on some areas where they may have over expanded during the pandemic.

And look, you know, we've talked about this before. You know, this is basically these companies own doing where, you know, they all expanded thinking that we were going to turn into, I said this before, the people from Wally and just hang out in our chairs forever. And they were like, well, we'll hire for that world because that's what's going to happen. It turns out we like to go outside still. And so, you know, they don't like to use our legs. So it turns out they over expanded. Now they're kind of course correcting for their own mistakes.

And, you know, I guess you could say to their credit, a lot of the CEOs for some of the big tech firms have come out and said, look, we thought that this was going to be the future and it's not. And, you know, now they're dealing with it. You know, they're still getting fat paychecks, but the workers who are getting laid off, they're the ones that actually have to deal with it. Right. And asking, you did all this spending on this area that's not going to pay off, at least in the next two to three and maybe even five to 10 years. So now it's this larger question of what the flattening of their org structure continues to look like because they allocated capital and mismanaged that allocation of capital. I think it's fair to say at this point in time, they said this and acknowledged it in their most recent earnings call that you alluded to as well.

They're removing some layers of middle management, trying to make decisions faster, deploying AI tools to help their engineers be more productive. So how quickly could this shift take place and how much different of a meta-platforms could we be looking at at the end of the day? I mean, there were some analysts who were, you know, really hyped on the fact that they're cutting back on some spending. And you know, I think when they looked at the last earnings call, it wasn't the last earnings report. It wasn't as bad as maybe they expected. But it sounded like they were, to me at least, you know, maybe overly enthusiastic about where the ad market is at this point because, you know, you looked at Google, they were down, you looked at, you know, Meta, they were down, you looked at Snap, they're just, you know, in this morass that they're trying to pull themselves out of. But you know, there's also on the flip side of that, there's, you know, the stronger dollars. So that's, you know, impacting their earnings as well.

I think, you know, when it comes to something like a meta, it appears as though they may have gotten around the issue of the Apple privacy changes that really slammed them hard for the past year. Now it's just the digital ad market and whether or not that's coming back stronger. You know, I think it's something where, again, this is a company that's pushing billions of dollars of resources into a platform that, I mean, frankly, may never really take off this vision of the metaverse with these headsets. You know, sure, Apple's coming out with something, but the vision of the metaverse as Meta has it where you're in a headset, eventually you're wearing glasses. You know, I mean, we have- Glasses haven't done well. Google Glass, not great. No.

Spectacles, not great. So now you're looking at an Oculus that, sure, for some gaming has been decent and elevated the gameplay experience in that facet for which game players decide whether or not they want to be in virtual reality. But for an everyday usage to the point where Julie and I want to- We're not there yet. Want to have your meeting? Have our meeting? Yeah, no. I don't think so. All right, we gotta leave it there. Dan, we will catch up with you later, but thank you so much for talking with us about all this stuff.

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