Facebook loses $68 billion; Does the social network have a chance of going bankrupt?

Facebook is a social media launched in February 2004 and operates through the private company Meta.

The social network has grown dramatically in recent years and in 2012 it reached the mark of 1 billion active users, with this number, it has become the largest virtual social network in the world.

In 2016, the number of people who joined the social network increased and reached 2 billion active users. However, with the popularization of other social platforms, Facebook has seen a drop in the number of users and also in money in recent quarters.

So check out below what are the chances that Facebook goes bankrupt.

Facebook profits drop dramatically. Credit: @jeanedeoliveirafotografia / pronatec.pro.br

Facebook loses BRL 68 million

Facebook is experiencing its worst crisis after a year of underperformance. As a result, Meta, which is the current owner of the social network, revealed a 4% drop in revenue in the last quarter when compared to the same period last year. This makes this the second quarter in a row that the company has experienced declines in revenue.

As a result, after the market closed, Meta’s shares fell by 19.80% and this was the lowest percentage reached since February 2016. These constant drops resulted in the loss of about R$ 68 billion in market value .

As a result, the company’s net income also saw a considerable drop. This is because there was a 19% growth in costs and, due to the drop, the company had a 46% indentation in the annual comparison, reaching US4 5.6 billion.

Meta reveals that part of these results is due to the devaluation of the dollar, which ends up impacting the results, not only of Facebook, but of all other technology companies.

In order to reduce losses, the company published a statement where it says it is looking for more efficiency in the operation, which could lead to layoffs.

In this way, the company emphasizes that it is promoting significant changes along the entire line so that improvements can be made, thus, the company is studying new teams and investing in the growth of the number of employees.

Due to the global economic crisis, Meta is trying to reduce its number of employees through a reorganization of the internal teams. Then, in early October, Zuckerberg said in a meeting with his employees that up to 10% of the company’s job positions worldwide could be affected.

Also check: Memory full? Check out seven versions of Facebook, Instagram, TikTok and other apps that are LIGHTER

Learn more about Facebook!

Facebook was founded by Mark Zuckerberg and his college roommates Eduardo Saverin, Dustin Moskovitz and Chris Hughes. At first, the site was limited to Harvard University students only, however, it expanded to Boston colleges, the Ivy League and Stanford University.

Before opening the network to people all over the world, Facebook expanded among university and high school students alike.

See more: 7 things you didn’t know about BLOCKING someone on Facebook

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