Facebook freezes hiring, blames iOS changes for reduced revenue growth

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in General Discussion
Meta, Facebook's parent company, has told staff it is freezing recruitment as its revenues grew less than predicted, in part because of Apple's iOS 14 privacy changes.




Apple introduced App Tracking Transparency (ATT) in iOS 14.5, giving users the ability to decline being tracked by advertisers through their apps. Facebook had already been a vociferous opponent of the move, taking out newspaper ads claiming Apple was damaging small businesses.

Later, CEO Mark Zuckerberg claimed that Apple's moves could even be good for Facebook. Then in April 2021, Facebook warned investors that ATT was affecting the company's income.

Now, according to Business Insider, Facebook parent company Meta is looking to cut costs, and has told staff that it is freezing most recruitment.

"While we're optimistic about opportunities ahead, we need to ensure we are making focused, balanced investments to support our most strategic priorities," Meta CFO David Wehner said in an all-staff email. "We're facing headwinds including slower revenue growth than anticipated at the start of the year."

"This is due to a number of factors including the loss of signal from iOS changes," continued Wehner, "business challenges resulting from the war in Ukraine, and the general macroeconomic environment."

Wehner said that the post-pandemic downturn "is affecting us too," and that therefore the company has to "make some tough decisions" about its short- and medium-term plans.

Meta is "still going through our reprioritization," but the company is beginning by implementing a reduction in "our hiring targets for 2022." Meta isn't ruling out any hiring, but the company will "need to pause" recruitment in certain engineering categories.

It's also "canceling future scheduled interviews" for some candidates. Existing employees may also be moved into different areas as Meta will now be "reviewing headcount allocation to make sure it's aligned to our top company priorities."

Separately, recent estimates on the impact of Apple's ATT say that it cost social media $10 billion in the second half of 2021.

Read on AppleInsider

Comments

  • Reply 1 of 19
    kelemorkelemor Posts: 21member
    Waaaaaah we need your info or you won’t get any VR place to go hang out 
    rob53lordjohnwhorfinwilliamhcornchipJapheylolliverStrangeDayswatto_cobrajony0
  • Reply 2 of 19
    rob53rob53 Posts: 3,006member
    Good. Now baby face needs to take a pay cut instead of laying off the real workers. 
    cornchiplolliverjeffharrisStrangeDayswatto_cobrajony0
  • Reply 3 of 19
    Facebook is so full of shh, making billions off of iOS users. Without sharing any of the revenue. We are the product. What a privacy nightmare. 
    rob53cornchipJinTechlolliverDogpersonjeffharriswatto_cobrajony0
  • Reply 4 of 19
    MacProMacPro Posts: 19,500member
    Oh dear, what a shame.

    cornchipM68000lolliverwatto_cobra
  • Reply 5 of 19
    dantheman827dantheman827 Posts: 103member
    He isn't entirely wrong that Apple directly reduced their revenue by giving users back the control to prevent tracking...

    But an entire business built on tracking your users really doesn't seem like the best business plan...
    MacsWithPenguinscornchipfred1lolliverjeffharrisStrangeDayswatto_cobrajony0
  • Reply 6 of 19
    ratmat2000ratmat2000 Posts: 14member
    This is code for “we’re not making any money on our metaverse pipedream so let’s blame it on Apple.”
    Beatsdewmelolliverjeffharriswatto_cobrajony0
  • Reply 7 of 19
    Because if profit rates slip from "obscene" down to merely "disgusting", folks will be piiiiiiiiiised.
    cornchiptokyojimuwatto_cobrajony0
  • Reply 8 of 19
    bloggerblogbloggerblog Posts: 2,253member
    Facebook must now regret how they burned a bridge with Apple by blocking Job's social media platform, Ping.
    watto_cobra
  • Reply 9 of 19
    BeatsBeats Posts: 3,073member
    Facebook must now regret how they burned a bridge with Apple by blocking Job's social media platform, Ping.

    Did they really? Pretty dirty considering Jobs got along with Zuck. 
  • Reply 10 of 19
    M68000M68000 Posts: 483member
    Would love to see real competition that is better than Facebook on many levels.
    lolliverDogpersonwatto_cobra
  • Reply 11 of 19
    fred1fred1 Posts: 983member
    Best news I’ve heard all day. 
    lolliverkdrummerDogpersonwatto_cobra
  • Reply 12 of 19
    mjtomlinmjtomlin Posts: 2,572member
    He isn't entirely wrong that Apple directly reduced their revenue by giving users back the control to prevent tracking...

    But an entire business built on tracking your users really doesn't seem like the best business plan...

    But... it doesn't prevent tracking, it makes the user choose if they want to be tracked or not. Facebook, and any other developer can still track. It's just that at that point, they become liable for non consent.
    watto_cobra
  • Reply 13 of 19
    tundraboytundraboy Posts: 1,836member
    Apple has been blamed for many things, but blaming it for one's own sociopathic toxicity is something I haven't heard before.

    If you hadn't functioned without a moral compass for so long that billions of people have begun to notice it, don't blame someone else for people welcoming measures to evade your toxicity.
    lolliverDogpersonjeffharriswatto_cobrajony0
  • Reply 14 of 19
    mattinozmattinoz Posts: 1,906member
    I guess it should be easy for them to reduce staff...

    I mean now that brand identity is they have nothing to offer without being creepy surely people will be making for the exits to avoid having that smell attach to them.
    watto_cobra
  • Reply 15 of 19
    JFPottsJFPotts Posts: 10member
    Once Elon takes Twitter public again in 3 to 5 years he can take a crack at Fakebook.
    watto_cobra
  • Reply 16 of 19
    StrangeDaysStrangeDays Posts: 12,195member
    Gee, you hate to see it.
    watto_cobra
  • Reply 17 of 19
    bloggerblogbloggerblog Posts: 2,253member
    Beats said:
    Facebook must now regret how they burned a bridge with Apple by blocking Job's social media platform, Ping.

    Did they really? Pretty dirty considering Jobs got along with Zuck. 
    Yup
    https://www.engadget.com/2010-09-02-all-things-d-facebook-blocked-apples-ping-service-for-unauthor.html
    watto_cobrajony0
  • Reply 18 of 19
    qwerty52qwerty52 Posts: 360member
    Zuckerberg has always been trying to bite in the arm that was feeding him for years. Always against Apple, always criticism, whatever Apple did, was always bad for him.……

    But it is all over now! 

    He’s free to cry a river in choir with his friend Sweeney

    Sorry guys, to late ……..
    watto_cobrajony0
  • Reply 19 of 19
    mattinozmattinoz Posts: 1,906member
    Beats said:
    Facebook must now regret how they burned a bridge with Apple by blocking Job's social media platform, Ping.

    Did they really? Pretty dirty considering Jobs got along with Zuck. 
    Yup
    https://www.engadget.com/2010-09-02-all-things-d-facebook-blocked-apples-ping-service-for-unauthor.html
    It wasn’t long after that Facebook started being aggressive to creators. Charging them to promote posts to get the same reach they had from building a following not just to expand their reach. 
    watto_cobra
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