Meta's net income drops as thousands lose jobs amid AI race
File photo of Meta chief executive Mark Zuckerberg
Meta's net income in the first quarter of 2023 fell by 24 per cent to $5.7bn as the company invested a significant bit of its finances into deploying Artificial Intelligence across its platforms.
Overall, the company reported better than expected quarterly results on Wednesday (April 26) after three quarters of straight decline. The small uptick in Meta's revenues came amid chief executive Mark Zuckerberg's "year of efficiency" pitch.
The company's earnings per share, however, dropped 19 per cent to $2.20.
Meta quarterly results: What do they show?
Meta's revenue in the first three months of the year was up 3 per cent from a year ago to $28.6bn. The analysts had expected a slight decline in Meta's revenue to $27.7bn.
According to S&P Capital IQ, the company also forecast revenue in the ongoing quarter of between $29.5bn and 32bn, Financial Times reported.
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Meta also adjusted its guidance for expenses in 2023 in a bid to save about $2bn by the end of the year. From a range of $86bn to $92bn, they are now down between $86bn to $90bn.
Its capital expenditure guidance, however, remains unchanged at between $30bn and $33bn.
Meta shares rose 10 per cent on the Wall Street on Wednesday after it beat analysts' expectations and reported better-than-expected quarterly results.
Meta quarterly results and heat from mass layoffs
Meta announced a restructuring of its staff previously leading to about 20,000 job cuts, among the most in the Silicon Valley. The current quarterly results deem significance in the wake of Zuckerberg's "year of efficiency" pitch entailing mass layoffs at Meta to cut costs.
'We had a good quarter': Mark Zuckerberg
"We had a good quarter and our community continues to grow," Zuckerberg said after the release of Meta's quarterly results.
ALSO WATCH |Another round of mass layoffs begin in Meta, to cut 10,000 more jobs
"Our Artificial Intelligence work is driving good results across our apps and business. We are also becoming more efficient s we can build better products faster and put ourselves in a stronger position to deliver our long-term vision."
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