How Big Tech Like Apple and Meta Plan to Weather the Storm of a Poor Economy – Movieguide

Published: August 30, 2022

How Big Tech Like Apple and Meta Plan to Weather the Storm of a Poor Economy

By Movieguide Staff

As the economy grows unstable and uncertain, investors are backing off from riskier investments like the tech industry.

According to Variety, the reduced global economy has resulted in a lower marketing budget. Now, big tech companies are looking for additional ways to make up losses due to a lack of advertising.

What were hearing from advertisers, more specifically as it pertains to advertising budgets is what we said before, which is that they are taking this time, given all of those other macro pressures, to reevaluate their priorities to ensure that theyre making the right investments in the right places. And when we talk about digital advertising, it is the easiest thing to turn off, Jeremi Gorman, Snaps chief business officer, told the publication.

Metas COO Sheryl Sandberg added: Many of the macro factors having an impact on our revenue are continuations of things weve seen in previous quarters. But there are also new challenges with rising inflation and uncertainty around a looming recession. We know that recessions put pressure on marketers to make sure their ad budgets are spent in the smartest way possible.

Companies are looking to cut spending by hiring fewer people while the economy struggles.

Given the uncertain global economic outlook and the hiring progress achieved to date, as Sundar previously announced, we intend to slow the pace of hiring. We expect our actions on hiring to become more apparent in 2023, Alphabet CFO Ruth Porat said. Although we expect the pace of headcount growth to moderate next year, we will continue hiring for critical roles, particularly focused on top engineering and technical talent.

Snap CFO Derek Andersen added: We intend to substantially slow our rate of hiring to effectively pause growth in our headcount, which is a significant portion of our OpEx.

Despite their caution, Apple and other big tech companies are confident in their business models.

As we look forward, were clear-eyed about the uncertainty in the macro environment. Yet we remain ever focused on the same vision that has guided us from the beginning. Cook said. We strive every day to be a place where imagination ignites innovation like nowhere else, where good people come together to achieve great things, where customers are the center of everything we do. And well continue to execute on that vision as we always have, led by a focus on excellence and a desire to leave the world better than we found it.

Movieguide previously reported the dangers of big tech overreach:

The results of a recent survey show that approximately 80% of registered voters favor the idea that the federal government should curb the influence of big tech companies.

Big tech has exercised extensive overreach over the last several months, including cracking down on conservative content while freely allowing terrorist organizations to recruit on platforms like Facebook.

The poll, conducted by Benenson Strategy Group in conjunction with Public Opinion Strategies, gathered relevant data from 2,016 registered voters.

In a society that is often defined by stringent political polarization, the survey found that on many issues regarding perceived problems with Big Tech right-wingers and left-wingers share similar views, particularly when it comes to regulating the power such technology companies possess.

83% of Democrats as well as 78% of Republicans from the survey concurred that U.S. government intervention for the purpose of controlling tech companies interference in their lives would be beneficial.

Such interferences on the part of major tech groups, for instance, include Facebooks limiting platform data accessible to media researchers and Googles censorship of ads from the anti-abortion advocacy group Live Action. And these are but a few of the recent concerns.

Likewise, 84% of Democrats and 85% of Republicans represented in the poll were very nervous about the ramifications that the use of social media can have on minors.

Social media has a long track record of causing a range of mental health dilemmas in children.

Given the visually-stimulating content proliferating across these platforms, youthful audiences are exposed to unrealistic, perfectionist models of body image and to unhealthy sexual tendencies.

Numerous child suicides have been linked to Instagram and have even been posted to the platform.

The Future of Tech Commission anticipates using the data collected via the survey to spur policymakers to strive for the limiting of these Internet giants power.

A co-chair of the commission, Deval Patrick who is a former governor of Massachusetts, holds that the results of the survey point to the need for massive tech companies to operate within boundaries, the Wall Street Journal reported.

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How Big Tech Like Apple and Meta Plan to Weather the Storm of a Poor Economy - Movieguide