He has been moving the company into the so-called immersive world of the metaverse, an untested market. Meta also faces stiff competition from adversaries like TikTok, which is stealing advertising dollars away from social media companies, and Apple, which has put the screws to Facebook’s advertising technology with privacy updates to the iOS software.
Those challenges, which follow years of unbridled growth at Meta, have raised questions about the company’s future and its vulnerabilities.
In a turnaround attempt, Mr. Zuckerberg has embarked on what he calls a “year of efficiency” and has reined in spending and slashed employee ranks by more than 21,000 people, or roughly 30 percent. Meta’s stock price, which rose roughly 9 percent in after-hours trading, has surged 63 percent since the company announced a first round of layoffs in November.
Those moves have also led to a drop in employee morale. Workers are questioning whether they will be among those cut in Meta’s cullings of the work force. Mr. Zuckerberg has said he is trying to eliminate “managers managing managers,” the result of a glut of middle management driven by overzealous pandemic-era hiring. He has announced two rounds of layoffs so far, and more cuts are expected to come next month.
The company said its employees totaled 77,114 as of March 31, down 1 percent from a year ago.
Even with the latest results, Meta’s challenges remain. The company’s costs continued to rise, jumping 10 percent, to $21.4 billion, from a year ago and outstripping revenue growth.