Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Company Culture trouble for facebook

Facebook founder Mark Zuckerberg is cutting back company expenses, but the closure of NYC office indicates the company could be in bigger trouble. (Photo by Drew Angerer/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Oct 5, 2022

Troubling Signs for Facebook

Meta’s announcement about the closure of a New York office combined with a previously announced hiring freeze could mean Facebook is losing its luster. 

Key Details

  • Facebook parent company Meta Platforms has been cutting back on its expansion plans in New York, though it is continuing with plans to expand offices near Pennsylvania Station.
  • The closure of the Manhattan office comes soon after CEO Mark Zuckerberg called for team reorganization and workforce cutbacks. 
  • The company has instituted a hiring freeze during a time of restructuring which includes cutting expenses and refocusing on priorities. This is the first major budget cut since Facebook’s founding.

Why it’s news

Restructuring teams and cutting extra expenses is sounding alarm bells for some Meta Platforms employees as it signals potential layoffs in the future. 

Zuckerberg’s move to cut costs indicates that Facebook’s competition is having an effect on advertising revenue. New privacy restrictions imposed by Apple have limited Meta’s once finely targeted advertising. Social media platforms like TikTok and BeReal are drawing younger users away from Facebook.

Meta spokesman Jamila Reeves explained the closure saying, “Two twenty-five Park Avenue South has served as a great bridge space to get us to our new offices at Hudson Yards and Farley. We are working to ensure we’re making focused, balanced investments to support our most strategic long-term priorities.”

In addition to struggling ad revenue, Zuckerberg is investing in his virtual reality platform, the metaverse. Though the Facebook founder envisions this platform as the future of communication, he has admitted himself that it will lose money—not make money—for several years. 

Though hiring freezes are typically implemented to prevent layoffs in the future, Meta closing the doors of this office indicates that layoffs could be around the corner. 

Backing up a bit

This year has turned out to be a challenging one for Facebook. Despite dominating social media for years, it seems the company can’t keep up with the competition. At the end of 2021, Facebook lost daily users for the first time. 

In February of this year, the company had its worst trading day ever as its market value was cut more than 26%.

Driving Facebook’s decline could be the simple fact that young people don’t find the social media site cool anymore. 

The number of teens using Facebook has declined sharply over the last several years. A 2022 Pew Research analysis found that 32% of teens use Facebook compared to 71% in 2015.

When Facebook was founded, it had little to no competition. Now, the social media market is nearing over-saturation. 

In the same way that video streaming pushed out cable and Netflix pushed out Blockbuster, without innovation, Facebook may become a symbol of a bygone era.

Meta’s stock has fallen 59% since the beginning of the year.

Home / News / Troubling Signs for Facebook
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com