Last week, Meta Platforms, previously known as Facebook, made a significant shift in its strategy that had shareholders overjoyed. The founder and CEO, Mark Zuckerberg, announced measures to improve the company’s balance sheet and shift its focus away from the metaverse to artificial intelligence (AI).
To achieve this, Meta plans to cut an additional 10,000 jobs, marking the second massive round of layoffs in four months. The company had previously rebranded to Meta last year, signifying its costly shift to the virtual world, but shareholders reacted negatively to the strategy and demanded that the company cut costs.
This about-face means that Meta is finally taking steps to address the concerns of its investors, and analysts say that these cost-cutting measures and shift to AI are what Wall Street has been waiting for. Shares of the stock rose nearly 9% last week, and investors seem pleased.
Meta’s prioritization of AI is essential, as its competitors have already solidified their stakes in the space. Microsoft and Google have both announced their AI products, and Meta does not want to be left trailing behind other tech giants.
However, Meta’s path to competing with its peers in the tech industry will not be easy, and the company still has significant growth challenges ahead. But, for now, Meta’s shift in focus is music to the ears of investors who have been waiting for the company to prioritize its current performance over the metaverse.Regenerate response