Facebook internal memo warns company to be disciplined, prioritize

Chris Cox, Product Director of Meta, speaks at the WEF in Davos, Switzerland on May 25, 2022.

Adam Galica | CNBC

facebook parent Meta warned employees that the second half of the year will be difficult as the company continues to struggle with its core online advertising business amid a weakening economy.

Meta’s chief product officer Chris Cox detailed the company’s financial dilemma in an internal memo detailing key areas the social media giant plans to invest in, a spokesman confirmed to CNBC. The memo was Reuters previously reported.

Cox echoed statements made by Meta CEO and co-founder Mark Zuckerberg during an analyst call as part of the company’s first quarter. earnings a report detailing the negative impact on the company’s business caused by the privacy update Apple made to the iPhone last year.

The Meta executive added that the company is going through “serious times and the headwind is tough,” stressing that its problems aren’t likely to go away anytime soon.

“We need to perform flawlessly in a slower growth environment where teams can’t expect a huge influx of new engineers and budgets,” Cox wrote. “We need to prioritize more ruthlessly, be thoughtful about measuring and understanding what drives impact, invest in developer efficiency and speed within the company, and manage leaner, meaner, more interesting teams.”

To offset the impact of Apple’s update, which limited Facebook’s ability to target ads to specific audiences, Cox said the company is working hard to make money from Instagram Reels, its TikTok competitor, while also investing in artificial intelligence to provide content recommendations like this. does TikTok. as a company previously said.

Meta also plans to invest in features that will make it easier for retailers to serve ads to shoppers in their app family and for employees to communicate with businesses via messaging.

A spokesperson for Meta downplayed the internal memo to CNBC, noting, “This was just an internal strategy memo designed to build on what we’ve already publicly stated on the earnings report about the challenges we’re facing and the opportunities we have.” where we’re putting more of our energy into problem solving.”

Meta shares were virtually unchanged after Thursday’s close at $161.10.