The Chicago Journal

Meta will charge users for its subscription service

Claire Peterson Claire Peterson on September 5, 2023

Meta – Another upcoming huge tweak Mark Zuckerberg made to Facebook and Instagram on Sunday has already angered users.

The CEO of Meta reportedly stated that the business is exploring a paid membership service that validates Facebook and Instagram users.

The unexpected Meta news surfaced just after Twitter said that it will start charging users for SMS two-factor authentication.

The news

In his introduction, Zuckerberg said that the subscription service will be dubbed “Meta Verified.”

Everyone who wants to utilize this service must pay $11.99 each month.

Those who use iOS, however, will have to pay $14.99 a month.

Australia and New Zealand will have access to Meta Verified this week before other regions.

Meta Verified

Meta’s subscription service is more than just a status symbol.

Also, it has benefits including enhanced protection against fake accounts.

Furthermore, Meta Verified provides clients with easy access to customer service.

A blue badge that enables account verification is given to users who utilize the subscription service.

Anybody who wants to utilize the subscription must have a government ID that exactly matches the name and photo on their profile.

They must also be at least 18 years old to subscribe to Meta Verified.

Statements

Mark Zuckerberg posted the following in a post on the Instagram broadcast channel Meta Verified:

“This new feature is about increasing authenticity and security across our services.”

The startling revelation shocked everyone, but Meta clarified to let everyone breathe.

The social media behemoth said that the verified accounts, which were previously exclusively accessible to real, well-known people, will not be impacted by the new subscription service.

“We are evolving the meaning of the blue badge to focus on authenticity so we can expand verification access to more people,” said a Meta spokesperson.

“We will display follower count in more places so people can distinguish which accounts are notable public figures among accounts that share the same name.”

A league of their own

Due to the company’s use of subscription services, Meta Verified falls under the same banner of platforms like:

  • Discord
  • Reddit
  • Twitter
  • YouTube

Twitter has generated the hottest discussions out of all the websites with a committed subscription service.

Twitter Blue

In December, Twitter Blue, a premium service for verification, was re-released by Elon Musk and Twitter.

The firm had been utilizing the service up until a flood of fake “verified” accounts forced them to withdraw.

Twitter has also added new colors for a number of checkbox choices to make it simpler to distinguish between distinct accounts, including:

  • Gold checks for companies
  • Gray checks for government organizations and affiliates
  • Blue checks for individuals, celebrities or non-celebrities

Android and iOS users may use Twitter by subscribing to Twitter Blue for $11 per month.

Elon Musk wanted to increase the number of customers when he paid $44 billion to buy the business in late 2022.

Read also: Microsoft AI actually had errors in demo last week

Two-factor authentication 

There was uproar when Twitter said last week that it was reviewing how it handled two-factor authentication.

SMS texts are a two-factor authentication mechanism that is exclusively accessible to Twitter Blue subscribers, according to the press release.

A 2021 survey by Twitter Account Security found that just 2.6% of Twitter users had 2FA activated.

Around 74.4% of customers have so far chosen SMS authentication.

Beginning on March 20, non-Twitter Blue users will have two more, cost-free login options:

  • A security key
  • A mobile authentication app

On February 15, the news was made on Twitter in a blog post that read:

“Instead of only entering a password to log in, 2FA requires you to also enter a code or use a security key. This additional step helps make sure that you, and only you, can access your account.”

“While historically a popular form of 2FA, unfortunately we have seen phone-number based 2FA be used – and abused – by bad actors.”

“So starting today, we will no longer allow accounts to enroll in the text message/SMS method of 2FA unless they are Twitter Blue subscribers.”

“Non-Twitter Blue subscribers that are already enrolled will have 30 days to disable this method and enroll in another.”

“We encourage non-Twitter Blue subscribers to consider using an authentication app or security key method instead.”

“These methods require you to have a physical possession of the authentication method and are a great way to ensure your account is secure.”

…

Meta set for change with workforce layoff

Edward Anderson Edward Anderson on November 14, 2022

Meta, Facebook’s parent company, plans to begin its first major layoffs to cut its workforce amid a struggling economy.

According to the Wall Street Journal, the company’s move comes as it grapples with declining business and growing fears of a recession.

The news

The significant layoff is expected to affect thousands of employees.

According to the Journal, the layoffs could begin this week, citing anonymous people familiar with the case.

A September SEC filing also shares that Meta has over 87,000 employees.

Read also: Meta to make changes after stocks fall 17%

Earnings result

Last month, Meta held a conference call discussing the third quarter results.

CEO Mark Zuckerberg said he expects Meta to end 2023 with the same size or smaller organization than today.

Revenue

While it’s not certain yet, the potential cuts could be linked to tighter budgets for advertisers.

Additionally, Apple’s iOS privacy changes have affected the company’s core businesses.

Last month, Meta reported a sales decline in the second quarter and reported that profits had halved from 2021.

The drop in profits is caused by the billions the company spent to build the metaverse.

The metaverse is what many suggest is the future of the Internet; however, it is probably years away from operating.

The social media giant had a market cap of over $ 1 trillion in 2021, but it has declined.

Meta is currently worth over $250 billion.

When news of the company’s job cuts surfaced, the company’s shares opened more than 5% higher on Monday morning.

Read also: UK gives breakup order, Meta to comply and sell Giphy

Other companies

Meta isn’t the only company in the tech industry rethinking its workforce.

Many companies in what was once considered an untouchable industry have recently announced staff freezes or job cuts.

The decision comes as a surprise as many grew rapidly during the pandemic.

Last week, Lyft announced that it would lay off 13% of its employees.

Payments processor Stripe also said it would cut 14% of its workforce.

Additionally, e-commerce giant Amazon has announced that it will pause corporate hiring.

Facebook’s rival Twitter made heavy cuts Friday after Elon Musk bought the social media company.

Twitter’s cuts have impacted its AI, marketing and communications, research and public policy team, just to name a few of the departments involved.

According to Bloomberg, Twitter asked dozens of laid-off employees to return.

Reference:

Wall Street Journal: Meta is planning significant layoffs

Meta to make changes after stocks fall 17%

Leah Cooper Leah Cooper on October 31, 2022

Meta announced its second-quarter results on Wednesday, revealing that the company had declined since its IPO.

The social media giant warns of sweeping changes ahead of 2023, starting with cost cutting.

The decision was taken to deal with the economic crisis which hit Meta’s main online advertising business.

Revenue

Meta posted revenue of $27.7 billion for the three months ending September.

Revenues are down 4% year-over-year but still above Wall Street analysts’ expectations.

The company posted its first quarterly decline in the June quarter.

The company also reported a net income of nearly $4.4 billion, less than half the same period last year.

Meta revenues are below analyst forecasts.

Founder and CEO of Meta, Mark Zuckerberg, released a statement:

“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”

Meta stocks

Shares of the company fell nearly 17% in after-hours trading on Wednesday after the earnings announcement.

Demand for online advertising has recently declined because of the rising inflation and recession fears.

Google and Snap have also seen their ad revenue decline.

Meanwhile, Meta CFO David Wehner said the average price per ad across the company’s platforms fell 18% in the quarter.

Read also: Stock market movement largely positive in October this year

App users

The growth of Meta users is slowing due to competitors like TikTok.

The company had 2.96 billion monthly active users on the Facebook app at the end of the quarter, up 2% year-over-year.

However, it declined from last year’s 6% growth in the same quarter.

Meta app’s daily active users grew 4% to 2.93 billion, compared to an 11% increase in 2021.

Zuckerberg noted that Instagram has more than 2 billion monthly active users, while WhatsApp has more than 2 billion.

The metaverse

The core challenges emerge when Meta invests billions of dollars in an ambitious effort to build the metaverse.

However, the metaverse is probably years away from perfection.

Wehner said the operational losses associated with the metaverse in 2023 would continue to increase year-after-year.

The Reality Labs unit lost nearly $3.7 billion in the September quarter.

So far this year, it has already cost Meta $9.4 billion.

Additionally, Reality Labs unit sales were down nearly 50% year-over-year in the September quarter.

Changes and reduction

Altimeter Capital last week wrote an open letter to make changes such as:

  • Reduce headcount expenses by at least 20%
  • Reduce annual expenditure by at least $5 billion
  • Limit investment in the metaverse to $5 billion per year

David Wehner said the company is making significant changes across the board for efficient operation.

Meanwhile, executives said Meta expects the headcount to be around 87,314 or less by the end of 2023, as reported in late September.

“We are holding some teams in terms of headcount, shrinking others, and investing headcount growth only in our highest priorities,” said Wehner.

Additionally, Wehner hinted that Meta might downsize its physical office footprint.

Read also: UK gives breakup order, Meta to comply and sell Giphy

Key investments

On the analyst call, Zuckerberg focused on three key investment areas for the coming years:

  • Meta’s AI discovery engine, which powers Reels and other recommendations
  • Ads and business messaging
  • Meta’s future vision for the metaverse

Earlier this month, Meta introduced its new virtual reality headset, the Meta Quest Pro.

The social media giant made its potential known to professional customers.

Meta expects quarterly revenue of between $30 billion and $32.5 billion for the last three months of 2022.

The forecast expects a decrease of 3.5% compared to the previous year.

Reference:

Meta stock falls 17% as its quarterly profit is cut in half