Even the biggest companies struggle. It seems to be the case with Meta . In an internal memo circulated this week among employees, Chris Cox , chief product officer, says the company is in “hard times” and that “headwinds are raging.” The company — which owns Facebook , WhatsApp, Instagram and Messenger , among others — is expected to experience slower growth in the second half of 2022.
The document, obtained firsthand by the Reuters news agency , addresses the macroeconomic pressures on the company as well as the impacts caused to the advertising business by privacy measures.
Cox urges directors to set priorities “ruthlessly” and command their teams to lighten up and perform better.
“We need to have flawless execution in a slower growing environment,” the memo reads. He also warns that teams should not expect too many engineers to arrive or rely on large budgets.
Meta bets us Reels to face TikTok
One of the priorities to reverse the situation is to monetize Reels, a short video format copied from TikTok and deployed on Instagram and Facebook.
The Chinese-origin app, by the way, is the toughest competitor faced by Meta in its entire history, since its founding as Facebook. The company’s networks began to lose users, especially younger ones. Meanwhile, the rival does not stop growing.
Cox also believes that Meta needs to deepen its investments in metaverse products , artificial intelligence, messaging, monetization, promoting the Reels, and ultimately adapting to new privacy requirements.
This month’s memorandum reinforces that the company’s situation is not the most peaceful. In May, Meta paused hiring for several teams, including shopping and videochat. Since the beginning of 2022, Meta shares have already fallen by more than 50% .