Facebook is in serious trouble.
After being caught working behind the scenes to help Joe Biden censor conservative news, all hell broke loose.
And now, the social media giant was just dealt one devastating defeat.
Facebook has long worked to throttle news that it disagrees with.
With the company’s corporate structure almost entirely staffed by partisan Democrats from the San Francisco Bay Area, Facebook has aggressively worked to shut down conservative voices on the platform, even going so far as to set up a site for the federal government to identify stories and posts that Facebook should work to remove.
As a result, Facebook has effectively worked to help the federal government under Joe Biden to circumvent the First Amendment limitations on government-imposed censorship.
But now that numerous news stories have broken about how Facebook has been working to shut down conservative news, the company is reeling from one financial disaster after another.
And now, mass layoffs are looming at Facebook as Mark Zuckerberg scrambles to save his company.
CBS reports, “Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.
“The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. There have been numerous job cuts at other tech companies that hired rapidly during the pandemic.”
Facebook’s financial troubles have been building for some time.
With many users deserting the social media site en masse and Facebook’s advertisement base shrinking at breakneck speed, the company is now faced with a fiscal disaster unlike anything Zuckerberg has seen before.
And it may be only a matter of time before Facebook is forced to resort to even more drastic measures in order to right the ship.
What’s more, Facebook’s stock price has taken a tumble since the social media giant has been hammered with allegations of severe political bias.
CBS adds, “Meta shares have tumbled more than 70% this year, compared with 32% for the tech-heavy Nasdaq Composite index. As of late October, Meta had lost roughly $700 billion in market value, leading one Wall Street analyst to call it a ‘train wreck.’ The company’s stock price rose 4% ahead of the start of trade on Wednesday to $100.57.”
That has resulted in Zuckerberg losing tens of billions in net worth over the past year, as the collapse in Facebook’s stock price has resulted in the company’s founder falling off a cliff on the list of the world’s richest people.
“Meta and its advertisers are bracing for a potential recession. There’s also the challenge of Apple’s privacy tools, which make it more difficult for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them. Competition from TikTok is also a growing threat as younger people flock to the video sharing app over Instagram, which Meta also owns,” concludes CBS.