Meta DENIES Report Mark Zuckerberg Plans to ‘Step Down as CEO in 2023’

Meta officials have denied rumors that billionaire Mark Zuckerberg is planning to step down as CEO of the company he built from scratch.

Insiders had told The Leak that the 38-year-old has decided to step down as head of Meta, the parent company of Facebook and Instagram.

They say the decision “won’t affect” the Metaverse, Zuckerberg’s multibillion-dollar virtual reality project that lost the company at least $30 billion.

But Andy Stone, a company communications official, tweeted on Tuesday, “This is fake.”

The rumors came as Facebook laid off large swathes of employees due to the company’s declining profits.

Investors and analysts have attributed the company’s downfall to Zuckerberg and other executives shifting their focus to the Metaverse, which it has yet to get enough interest.

Share prices for the social media giant are now nearly 70% down from last year, but were on the rise after the report.

Rumors circulated on Tuesday that Mark Zuckerberg was expected to step down from Meta next year

Andy Stone, a company communications official, tweeted on Tuesday, “This is fake.”

Share prices for the social media giant are now nearly 70% down year to date

Share prices for the social media giant are now nearly 70% down year to date

The company's stock prices rose slightly on reports that Zuckerberg would step down

The company’s stock prices rose slightly on reports that Zuckerberg would step down

The report comes as investors have lost faith in the Meta CEO as he continues to move forward with his Metaverse bet.

Last month, Brad Gerstner, whose Altimeter Capital fund owns hundreds of millions of dollars of Meta stock, wrote an open letter to the company making it clear that Zuckerberg is losing investor confidence.

“Like many other companies in a zero-interest world – Meta has slipped into the land of excess – too many people, too many ideas, too little urgency,” he wrote.

“This lack of focus and fitness is overshadowed as growth slows and technology changes.”

Gerstner went on to write, ‘Meta needs to get its mojo back.

“Meta needs to rebuild trust with investors, employees and the tech community to attract, inspire and retain the world’s best people,” he wrote.

“In short, Meta needs to be fit and focused.”

He suggested reducing the company’s headcount by at least 20% by January and said the company should limit its investments in the Metaverse to no more than $5 billion a year.

Brad Gerstner, whose Altimeter Capital fund owns hundreds of millions of dollars of Meta stock, wrote an open letter to the company last month making clear Zuckerberg is losing investor confidence.

Brad Gerstner, whose Altimeter Capital fund owns hundreds of millions of dollars of Meta stock, wrote an open letter to the company last month making clear Zuckerberg is losing investor confidence.

The company has struggled in recent months as executives focus on the new Metaverse, which has yet to get enough interest

The company has struggled in recent months as executives focus on the new Metaverse, which has yet to get enough interest

Zuckerberg has funneled more than $36 billion into the bankruptcy firm since 2019, according to earnings reports released last month, and has seen more than $30 billion disappear in just a few months.

Reality Labs — the division that hosts Metaverse and Facebook’s VR unit — reported just $5.3 billion in revenue for the year after a cumulative $30.7 billion operating loss since inception, according to damning financial reports. of business financing in 2019.

Costs and expenses for Reality Labs, the statements reveal, meanwhile, total $12.5 billion for the year 2021, even though the division brought in just $2.3 billion in revenue over the same time frame.

Investment for this year is now on track to surpass 2021, the data strongly suggests – with lab costs and expenses soaring to $10.8 billion in early 2022, a span that has seen the the division reports just $1.4 billion in revenue.

The troubling financial statements came on the heels of a third-quarter earnings report that further showed that Reality Labs had accrued an operating loss of $9.4 billion in the first nine months of 2022 alone.

Top executives say they expect losses to increase further as the project shows no signs of slowing down.

“We expect Reality Labs’ operating losses in 2023 to grow significantly year-over-year,” said CFO David Wehner after the eagerly-anticipated release of the results.

But Zuckerberg attributed the losses to the recent launch of the company’s new Quest VR headset and the impact of first annual salaries for staff hired in 2022, calling them the “biggest drivers” for the troubling results.

Financial statements show the executive has largely gambled his company's future on flailing technology, sinking tens of billions of company funds as he continues to struggle.

Financial statements show the executive has largely gambled his company’s future on flailing technology, sinking tens of billions of company funds as he continues to struggle.

The company is now laying off thousands of its employees as it tries to improve its dire financial situation.

Many of the new engineers who have been brought in to work in the controversial Metaverse over the past couple of years are expected to be on the chopping block, sources familiar with the matter have told Business Insider.

Zuckerberg is said to have appeared grim on the call announcing the layoffs earlier this month, and admitted he was responsible for Meta’s missteps.

He also said the company was understaffed because it was overly optimistic about its growth.

Lori Goler, human resources manager at Meta, said fired employees would be given at least four months’ salary as a severance package, sources told The Wall Street Journal.

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