Mark Zuckerberg, CEO of Meta, formerly known as Facebook, has witnessed a surge in his net worth, which has increased by $10.2 billion. As a result, he now occupies the 12th position in the Bloomberg Billionaires Index. As per Bloomberg, the increase in Zuckerberg’s net worth is the outcome of Meta’s shares rising by 14 per cent. The company reported strong growth in profits in the first quarter of 2023 after it had cut 21,000 jobs and other expenses. Meta’s net profit for the quarter ending March was $5.7 billion, which is a 22.7 percent increase compared to the profits of the four quarters of 2022.
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Zuckerberg, who has a 12.8 per cent stake in Meta, has a fortune of $87.3 billion. This hike in his net worth is the highest in over a year, and it has made up for the loss that he incurred back in 2022 when his net worth dropped to $71 billion. Last year, Zuckerberg lost about $29 billion of his net worth because Meta’s stock fell by 26 per cent, which reduced $200 billion from the company’s market capitalization.
While Meta has started witnessing an increase in profits, it is still cutting down on expenses. The company has so far conducted two rounds of layoffs, and it was recently discovered that it has started laying off people in technical roles, including user experience, software engineering, graphics programming, and more. A Meta spokesperson also confirmed the new round of layoffs to CNBC.
One of the workers who has been laid off said that the layoffs have been done in product-facing teams. In addition to this, Meta also plans to hand over pink slips to people who are in business-facing roles such as finance, legal, and HR. This is said to take place in May this year. Zuckerberg has previously apologized for the layoff decision in an email sent to impacted employees.
Zuckerberg stated that there are several reasons behind announcing layoffs. One is the economic downturn and the slow growth that Meta has been witnessing. Due to this, the company has been experiencing low revenue growth. In an email, the tech giant also stated that it over-hired in the past few years because of business needs.
Despite the layoffs, Zuckerberg remains optimistic about Meta’s future growth. He said, “We had a good quarter, and our community continues to grow. Our AI work is driving good results across our apps and business.” Zuckerberg’s leadership has been instrumental in the growth of Meta, and the company’s financial results are proof of this. However, only time will tell how Meta fares in the future.