While internet technology stalwart Meta Platforms (NASDAQ:META) gave stakeholders few reasons to smile this year, it managed to pleasantly raise eyebrows on Tuesday. In a sign that management understands the harsh realities of the current economic environment, it moved to cut costs. As well, META stock jumped on the underlying firm’s initiative to tackle terrorism and human trafficking.
With pressures and disappointments rising, Meta found itself needing to shift the narrative productively. According to the anonymous forum Blind, Meta’s employees blasted CEO Mark Zuckerberg, particularly for his obstinate commitment to the metaverse. One user called the next evolution of internet connectivity as the enterprise’s “slow death.” Others chimed in that Zuckerberg “will single-handedly kill a company with the metaverse.”
With META stock down roughly 65% for the year, it may take time for management to regain shareholder trust. However, the below two initiatives could move the needle in the right direction.
META Stock and the Acceptance of Harsh Realities
Last month, Reuters reported that Meta would cut 11,000 jobs, or 13% of its workforce. Management deemed the pink slips necessary for the company to double down on its “risky metaverse bet amid a crumbling advertising market and decades-high inflation.” Understandably, then, questions sprouted about the viability of META stock.
Unfortunately for remaining workers, the pain won’t end there. Instead, the tech firm recently announced that it will cut staff perks to $2,000 next year, down from $3,000 this year. These perks, which are part of its Life@ benefit, help employees and their families achieve “personal and well-being goals.” According to inside sources, the cuts will impact mental health and work-life balance needs.
In addition, Meta previously took away creature comforts such as laundry services and subsidized ride-sharing programs. Still, these moves can also be interpreted as management recognizing and acting on shareholder concerns.
A Practical Good
While both shareholders and employees debate the viability of Meta’s foray into the metaverse, certain initiatives carry a much higher and more useful meaning. In particular, Meta’s open-source tool to combat problematic images and video content – including terroristic threats and child abuse – could prove a gamechanger.
Called Hasher-Matcher-Actioner, it’s a “kit for software developers that works by creating a unique digital fingerprint (typically a string of letters and numbers) for each image or video on a platform,” per Axios. This technology “allows companies to quickly find and take action on not just a single posting of problematic media, but also other copies of that image or video.”
Better yet, this mechanism is compatible with existing databases but can also be used independently, allowing individual platforms to build and maintain their own databases of violating material. Therefore, Meta has the potential for collaborations and interconnected ventures, factors that can forward meaningful change through innovation.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
