Facebook parent Meta has reported its first revenue decline as it deals with increased competition from its new rival TikTok.

In 2022, CEO Mark Zuckerberg has been emphasizing the company’s long-term vision to move from being largely a social media company to the creator of the metaverse.

On Wednesday, July 27, he detoured from that path to underline the company’s top priorities.

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Meta will now look to build social connections and provide users with the algorithmic-powered stream of content that has made modern social media firms especially TikTok successful.

Zuckerberg said: “I want to be clear that we are still ultimately a social company focused on helping people connect.”

The announcement comes on the heels of reports that Facebook parent firm Meta saw its first quarterly sales decrease in a decade.

Zuckerberg’s remarks provide some insight into the company’s short-term survival plan.

Facebook leaders warned marketers are cutting down on spending in part due to an uncertain economic situation, which has some analysts predicting a recession.

The firm is battling increased competition in the social media industry for advertising dollars and users from upstart applications like TikTok and Snapchat.

Facebook’s stock declined in aftermarket trading.

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Zuckerberg’s hopeful view of the future of communication on its services comes as the business invests in recreating the formula that has propelled TikTok to popularity among youthful users.

Last week, the firm unveiled a redesign of its major social network, with the goal to highlight engaging content from strangers over those from friends and family.

In addition, Instagram has begun offering short-form videos called Reels in users’ feeds, alongside photographs and videos from people they know.

In recent times, these updates have sparked a barrage of criticism from many high-profile influencers, including Kylie Jenner, and Kim Kardashian who shared an image declaring: “Make Instagram Instagram again.”

Zuckerberg states that, besides responding in comments on their feeds, users are more inclined to send private messages to their friends.

He says reels account for more than half of the content re-shared in Instagram chats.

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Zuckerberg and other executives warned of impending financial woes, mainly the continuing impact of Apple’s new privacy restrictions.

Apple’s new restrictions seeks to restrict app developers’ capacity to acquire user data in order to run their targeted advertising business.

Facebook leaders have issued a dizzying amount of orders in recent weeks.

They described a new era of increased performance expectations and delayed hiring as the firm emerges from the pandemic with a mounting list of economic concerns.

Facebook said on Wednesday that it wanted to cut costs and hire fewer people this year.

In the long run, Zuckerberg stated that Facebook would continue to invest in developing the so-called metaverse, a place where people will want to work, play, and shop.

Zuckerberg said the metaverse would “enable deeper social experiences, where you feel a realistic sense of presence with other people no matter where they are.”

Source: The Washington Post

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