Meta, formerly known as Facebook, is once again hitting hard at Apple App Tracking Transparency (ATT) privacy feature. In addition to blaming the ATT feature for a reduction in revenue, Meta now claims that it will hire fewer new employees this year because of the Apple privacy feature.
In iOS 14.5 update, Apple introduced App Tracking Transparency, a new privacy feature for mobile that prevents apps from tracking users’ activity across third-party apps and websites without their consent. And that is a problem for digital advertisers and platforms like Meta.
Facebook is free because it runs ads, especially targetted ads by collecting data on users’ online activity, accessing the microphone or camera of their devices, and other invasive means. Now, the App Tracking Transparency feature gives iOS users a choice to either opt-in or opt-out of tracking which impacts Meta’s business model.
Meta claims low hiring will impact every team in the company
Lotame reported that major social media companies are likely to lose $16 billion in 2022 due to the Apple ATT feature. It was estimated that Meta will face their biggest hit by losing $12.6 billion in revenue.
In an internal letter sent to employees, Meta’s chief financial officer, David Wehner stated that the company is forced to make tough decisions this year. And because of the Apple ATT feature, the company will hire a few new employees in 2022.
The company needs to “take another look at our priorities and make some tough decisions about what projects we go after in both the short and medium-term.” Due to slower than expected revenue growth for the last quarter, which Wehner partly blames on Apple’s ATT (App Tracking Transparency) framework, Meta will hire fewer employees for the rest of 2022.
He went on to say that every team in the company will be affected by the lower talent pool recruited this year.
Wehner said this change “will affect almost every team in the company,” adding “this will be an opportunity to reprioritize work to make sure we’re all focused on the most important things.” Wehner remains optimistic, however, about what’s to come despite a turbulent last few quarters.
However, Wehner concluded the letter on an optimistic note that the incorporation of artificial intelligence (AI) in the advertisement business will help to sustain ATT’s impact.
Meta is also developing other avenues to generate revenue. Previously, the company’s CEO Mark Zuckerberg announced the launch of a new Metaverse, a virtual reality world, and will charge a 50% commission fee on virtual sales in its Horizon Worlds.