Instagram CEO Adam Mosseri moves to London

Instagram CEO Adam Mosseri

Elisabeth Franz | Reuters

Instagram CEO Adam Mosseri moves from San Francisco to London to grow his parent company. Meta seeking to lure users away from TikTok as it struggles with a sharp drop in user numbers.

Mosseri will move to London later this year and the move will be temporary, a Meta spokesperson confirmed to CNBC. the news was first reported according to the Financial Times.

London is Meta’s largest engineering center outside the US, with more than 4,000 employees, including a dedicated Instagram development team dedicated to creating services for creators. It also pioneered the messaging app Workplace.

Meta said Mosseri will be assisting the London-based company’s creative team, which is focused on helping certain users make money from their posts and countering TikTok’s rapid growth. The company is trying to reposition itself as a group of platforms that enable e-commerce in the online universe known as the “metaverse” and not just as a tool for advertisers to target people digitally.

Meta has struggled to convince investors of its turn to the metaverse as the company’s stock fell more sharply than Alphabet amid a broader decline in tech stocks and as its apps lose ground to China’s TikTok. The firm reported its first-ever decline in second-quarter revenue and gave weak guidance for the next quarter. Its advance into the metaverse proved costly, with the virtual reality division losing $2.8 billion in the three months to June.

To counter TikTok’s explosive growth, Meta has sought to mimic the platform through tweaks to its own apps, including creating its own short video feature called “Reels.” The company has also made some controversial changes to Instagram, favoring algorithm-generated content over posts from friends. This move caused a backlash from users. including Kim Kardashian.

Mosseri’s actions can be seen as an attempt to charm the UK regulators. The government wants to give media watchdog Ofcom more power to control Instagram and other social media platforms through a new law called the Internet Safety Act. However, progress on the bill was stalled by the resignation of Prime Minister Boris Johnson and the subsequent search for a new leader.

It also signals Meta’s broader move towards remote work. Amid the coronavirus pandemic, Meta CEO Mark Zuckerberg stood out as one of the biggest proponents of remote work among Silicon Valley leaders. In 2020, it began allowing some employees to work from home permanently, and then extended the policy to all employees. The company has also developed an app called Horizon Worlds that allows people to have team meetings through their VR headsets.