Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Tech News

Facebook “faces” false financial frailty

(TECH NEWS) Mark Zuckerberg claims Facebook has been struggling to get by during the pandemic, but is that the case? How many billions do they need?

struggling poor mark zuck

Is Facebook struggling to get by? That’s what CEO Mark Zuckerberg claims, saying in a New York Times article that: “we’re just trying to keep the lights on over here.”

Really? The company worth around $446.92B, with a CEO who earns $15B yearly, is struggling to make ends meet in the face of this pandemic? There are reports that social media – especially WhatsApp and Facebook – is up 40% with the surge of COVID-19. And even if those numbers are off, c’mon. It’s not hard to see how everyone being stuck at home might convince people to hop on social media more than usual.

So, what gives? Why is Facebook claiming it’s struggling right now? Well, there’s probably a few reasons.

First, with usage up, Facebook has been facing a lot more strain on the servers, especially as people turn to video services like Facebook Live and video chat. In fact, a lot of Facebook’s increased use can be attributed to its messaging and video services, which makes sense as people try to keep in touch with loved ones. Unfortunately, it does create challenges for the Facebook team to keep servers up and running with this unprecedented usage.

Advertisement. Scroll to continue reading.

Facebook reps also noted that they’re feeling the struggle of working from home, with over 45,000 employees now working remotely. Sure, this adjustment can be difficult – especially if there’s not much infrastructure in place for remote work – but…welcome to the club, Facebook. Those companies able to pivot to remote work are the lucky ones, especially as the U.S. has been hit with a wave of layoffs.

Now, Facebook’s biggest complaint is that much of the usage hasn’t increased in areas that they’ve monetized. Facebook Messenger, for instance, doesn’t use ads, so even if more people are using it, Facebook isn’t seeing any profits. Of course, just because more people are using the messaging system doesn’t mean they aren’t using Facebook in general. In fact, given the general trend towards increased social media usage, it’s quite possible Facebook’s profitable areas are also seeing an uptick.

Even on the very slim Facebook is losing money, though, it’s hard to believe they’re “just trying to keep the lights on over here.” Especially when small businesses across the U.S. are struggling to get by, or even closing down all together. There are definitely victims in the spread of COVID-19, but Facebook is Not one of them.

Advertisement. Scroll to continue reading.

Brittany is a Staff Writer for The American Genius with a Master's in Media Studies under her belt. When she's not writing or analyzing the educational potential of video games, she's probably baking.

1 Comment

1 Comment

  1. Pingback: Facebook enters the ecommerce space with launch of Shops

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Social Media

Meta Oversight Board has answered the call to review nudity policies across Meta properties, especially when it comes to breasts - why?

Social Media

Meta seeks to calm fears after confirming they've awarded a hacker for discovering a bug that allowed anyone to bypass 2FA on Facebook.

Social Media

The neutral Oversight Board gives Facebook a laundry list of suggested changes to their VIP accounts 'cross check' system.

Tech News

Nearly 90 percent of people who make to-do lists don’t finish them; can timed explosions fix that? Exploding To Do gives you productive chaos.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.