Meta job cuts seen saving only a small fraction of Metaverse losses

Meta’s profitability has fallen to a two-year low. Its operating margin has been sliding for several quarters to 20.4% at the end of September – half of what it was at the end of 2020. — Photo by JOSH EDELSON/AFP

Meta Platforms Inc.’s first major job cuts won’t be nearly enough to get the company back to being as profitable as it was just two years ago, according to analysts.

Meta laid off 11,000 workers on Wednesday. Chief Executive Officer Mark Zuckerberg said he bore responsibility for growing the company too quickly, on a failed bet that the increase in social media activity and online shopping during the pandemic would continue. "I got this wrong,” he said.