The Wall Street Journal has reported that Meta Platforms (NASDAQ: META) may cut costs by 10 cents or more over the next few months. The cost cuts are said to be the result of internal business reorganisations.

Meta reported a 22 per cent YoY cost increase to over USD 20 billion during the second quarter. Earlier, Chief Product Officer Chris Cox informed staff that the company is in serious times and the headwinds are fierce.
Due to various factors, Meta is facing significant business challenges.

Last year, Apple’s major privacy update for iOS 14 made it harder for Meta to deliver advertisers detailed demographic information about its users. Additionally, the rise of TikTok has adversely affected the company’s user growth.

On Wednesday, Meta shares were up less than 1 per cent in midday trading to USD 146.33. However, shares are down more than 56 per cent this year. The confirmation of WSJ reporting, more clarity on revenue, engagement or time spent, and reel monetisation are seen as key Q3 catalysts for Meta shares to re-rate higher.