Facebook, Instagram, and WhatsApp have lost 20 million daily users in a matter of months, according to parent company Meta's recent earnings call. That's a staggering 220,000 people every day ditching these popular apps.
The Californian firm says it's a result of external factors, including internet disruptions in Iran and restrictions blocking WhatsApp access in Russia — two markets where access has become increasingly unpredictable.
WhatsApp is the most popular messaging service on the planet, with over 3 billion monthly active users. It's owned by parent company Meta, which is run by Facebook co-founder Mark Zuckerberg. The 41-year-old multi-billionaire revealed that rising component costs, especially memory pricing, alongside the urgent need to expand data centre capacity to support growing AI and computing demands, have driven up costs for the firm.
Several companies have also been struggling across the industry. Upgrading to a Windows 11 PC will now be much more expensive. British start-up Nothing has also confirmed that smartphone prices will rise this year.
Susan Li, Chief Financial Officer at Meta, has admitted the company “underestimated our compute demand in the past,” framing this surge in spending as a necessary correction.
Meta CEO and Facebook co-founder Mark Zuckerberg has said rising component costs, especially memory pricing, alongside the urgent need to expand data centre capacity to support growing AI and computing demands has impacted the company
| REUTERSA big part of the spending has been tied to Meta’s long-term bet on the metaverse — a concept the company has been heavily investing in for years. This is the company's network of immersive virtual worlds where you can interact with others in real time using digital avatars. It's designed to be more immersive, where instead of scrolling on a screen, you’re “inside” the experience — working, socialising, shopping, or attending events in 3D environments, often through its virtual reality headsets or augmented reality glasses.
Mr Zuckerberg said in a statement, "Our vision for the future is one where society makes progress by individuals pursuing their own aspirations. Some people care about big issues like curing diseases, while others focus on personal goals. We're building AI to empower individual goals rather than a centralised AI to control productivity."
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Reality Labs, the arm behind Meta’s virtual reality headsets and wearable tech, continues to bleed cash, posting an operating loss of $4.03 billion in just three months. Its popular Meta Ray-Ban glasses are meant to work as AI-powered eyewear that blends style with functionality. These specs let you capture photos and videos hands-free, listen to music, take phone calls, and access information on the go.
However, the company has found itself in hot water after reports claim videos found these specs reveal that people undressing and using the toilet are being watched.
Meta AI glasses made their initial appearance in 2021, but it wasn't until the release of Meta Ray-Ban glasses in 2024 that they began flying off the shelves. | META PRESS OFFICEMeta is also planning to cut around 10% of its 78,000-strong workforce — nearly 8,000 jobs — in what could be one of its largest rounds of layoffs to date. Since the earnings call, Meta’s share price has fallen roughly 10% — wiping billions off its market value and shaking investor confidence.
Despite the turbulence, though, there is a silver lining. Meta’s revenue has still managed to jump 33% year-on-year to $56.3 billion — its fastest growth since 2021.