Facebook’s parent company Meta Platforms Inc said its revenue fell 4% to $27.71 billion in the third quarter of 2022.
Facebook said its monthly active users (MAUs) grew 2% to 2.96 billion as of September 30, 2022. Ad impressions increased 17% and the average price per ad fell 18% in the third quarter 2022.

Facebook said the workforce was 87,314 as of September 30, 2022, a 28% year-over-year increase. Facebook has indicated that there will be job cuts in the current quarter.

Facebook expects revenue of $30 billion to $32.5 billion in the fourth quarter.

Facebook is making changes to work more efficiently. Facebook is keeping some teams flat in terms of headcount, cutting back on others, and only investing headcount growth in the highest priorities. “We expect headcount at the end of 2023 to be roughly in line with Q3 2022 levels.”

Facebook expects 2022 spending to be between $85 billion and $87 billion, down from a previous forecast of $85 billion to $88 billion. This includes additional charges estimated at $900 million related to the consolidation of the office facilities footprint in the fourth quarter of 2022.

Facebook expects 2023 spending to be between $96 billion and $101 billion. This includes charges estimated at $2 billion related to the consolidation of the office facilities footprint.

Capital expenditures, including principal payments on finance leases, were $9.52 billion for the third quarter of 2022.

Meta expects 2022 capital spending to be $32-33 billion, down from a previous forecast of $30-34 billion.

For 2023, Meta expects capital spending to be between $34 billion and $39 billion, driven by investments in data centers, servers and network infrastructure. An increase in AI capability is driving nearly all of the capital spending growth in 2023.

Meta forecasts its total spending for the year 2023 to be $96 billion to $101 billion, significantly higher than a revised estimate of 2022 total spending of $85 billion to $87 billion. This includes charges estimated at $2.9 billion during 2022 and 2023 due to office downsizing.

Meta is making several overhauls to its apps and advertising products to keep its core business continuing to generate profits, while investing $10 billion a year in a bet on metaverse hardware and software.

Chief Executive Mark Zuckerberg said he expects investments in the Metaverse to take about a decade to pay off. In the meantime, he had to freeze hiring, close projects and reorganize teams to cut costs.

Zuckerberg said plays for Meta Reels’ TikTok-like short video product now have more than 140 billion on Facebook and Instagram every day, up 50% from six months ago, and its revenue rates are up. now $3 billion a year.

He believes Reels is winning against rival TikTok, he added, with Reels being re-shared more than a billion times a day.