Meta Platforms Inc's stricter cost controls this year and a new $40 billion share buyback sent shares soaring on Wednesday, as CEO Mark Zuckerberg called 2023 the 'Year of Efficiency.'
Zuckerberg described the focus on efficiency as part of the natural evolution of the company, calling it a "phase change" for an organization that once lived by the motto "move fast and break things."
"We just grew so quickly for like the first 18 years," Zuckerberg said in a conference call. "It's very hard to really crank on efficiency while you're growing that quickly. I just think we're in a different environment now." The cost cuts reflect Meta's updated plans for lower data-center construction expenses this year as part of a shift to a structure that can support both AI and non-AI work, it said in a statement.
The digital ad giant faced a brutal 2022 as companies cut back on marketing spending due to economic worries, while rivals like TikTok captured younger users and Apple Inc'scut more than 11,000 jobs"Our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organization," Zuckerberg said in a statement.
Monetization efficiency for Reels on Facebook, a short-form video format, had doubled in the past six months and the business was on track to roughly break even by the end of 2023 or early 2024 and grow profitably after that, he said on the conference call.
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