Meta, the social media giant, cut thousands of jobs in 2022 and plans to cut more in 2023 as part of cost-cutting measures. Despite the layoffs, the company reported increased revenue, which also led to a significant increase in Meta CEO Mark Zuckerberg’s net worth.
As per reports, Meta’s stock price increased by 14 per cent after the company reported better-than-expected revenues of $28.6 billion in the first quarter of 2023. This led to a spike in Mark Zuckerberg’s wealth by $10 billion, bringing his net worth to $87 billion. This made him even richer than what he previously was, as he became the 12th richest person on the planet, as per the Bloomberg Billionaire Index.
Even though Zuckerberg’s current wealth is significantly higher than it was in 2022, when his net worth dropped by $70 billion, he has faced challenges due to Meta’s expensive foray into the metaverse and the tech industry’s slump. In November 2022, his wealth went down to $35 billion, and Meta announced plans to cut around 10,000 jobs between March and May 2023, on top of the 11,000 jobs already eliminated in November 2022.
However, that did not stop Zuckerberg from being focused on metaverse. Despite these challenges, Zuckerberg remains committed to the metaverse and emphasized this during the company’s first-quarter earnings call. “A narrative has developed that we’re somehow moving away from focusing on the metaverse vision. So I just want to say upfront that, that’s not accurate. We’ve been focusing on both AI and the metaverse for years now, and we will continue to focus on both,” Zuckerberg said.
The Reality Labs division, which includes Meta’s AR and VR units, including the metaverse, reported a $4 billion operating loss. However, Zuckerberg stated that Meta would continue to focus on both AI and the metaverse, and the company declined to comment on the job cuts.
Despite being amongst the richest people in the world, Zuckerberg’s lifestyle appears to be relatively modest, except for his purchases of Italian sports cars and Hawaiian real estate, according to a report by Insider. He leads a very down-to-earth lifestyle.
Notably, Meta eliminated close to 21,000 roles in the end of 2022 and the beginning of 2023. In the official email, Zuckerberg noted Meta struggling with revenue loss and that the company plans to use resources efficiently to improve business and achieve better results.