Before we get into Meta Platforms’ first quarter earnings report, we have some new details about internal changes happening at Instagram as a result of Meta’s latest job cuts.
Instagram chief Adam Mosseri, in a note to Instagram employees last week, said the app needs a “flatter structure that gives everyone the opportunity to meaningfully contribute to our highest priority projects.” That means Instagram is doing some internal shuffling and will have four product groups called Sharing, Home, Communities and Business, according to the memo, which The Information viewed.
The descriptions of each team gives a view into Instagram’s main priorities as a company, which include creators and teens, as well as positioning the app as a place for entertainment and connecting with people you know. This is an extension of the three priorities Mosseri laid out publicly at the beginning of this year: “inspire people to be creative,” “help people discover things they love” and “spark connections between people.” But it’s more concrete and shows how much Instagram’s focus has morphed. In late 2021, Mosseri said the priorities for 2022 included doubling down on video, messaging and creator monetization.
Here’s what the memo laid out:
- The Sharing product group will center on helping teens and creators make content, express themselves and connect with audiences. The division will also include the Creators and Reels product group. This team will also support Project 92, Meta’s effort to create a decentralized social media network similar to Twitter. It’s significant the company is still working on that initiative despite shutting down other crypto projects, such as NFTs on Instagram. It comes at a time when Twitter alternatives are proliferating after Elon Musk’s acquisition of the company, including decentralized offerings like Jack Dorsey-backed Bluesky Social.
- The Home product group will focus on helping users “discover and interact with the people and things they love.” The Reels Engagement team, which includes staff working on the Reels Tab, and the Instagram Design Systems team will also join this group.
- The Communities product group focuses on making the app “safe and equitable” so users feel like they can express themselves and build communities. It will move the “Relevance Integrity” team from Home to Communities. Such shifts will help it “dedicate more resources overall to our equity work, which will benefit Instagram, along with the rest of the family of apps,” Mosseri wrote.
- The Business product group will remain focused on helping users find businesses and products. Its three “pillars” include opportunities, experiences and recommendations.
Plus Mosseri announced a personnel move: Connor Hayes, previously vice president of product management at Instagram, will take on a new role leading product and design for Meta’s Generative AI organization, under Ahmad Al-Dahle, the memo said. Al-Dahle is vice president of AI, machine learning and core tech at Meta, according to his LinkedIn account. Instagram said it plans to fill Hayes’ role. (See more on our Meta org chart.)
Instagram is also closing its London office. Mosseri, who announced he’d moved to London last August, will relocate back to the U.S.–Sylvia Varnham O’Regan and Kaya Yurieff
Now on to Meta’s Q1 results…
Meta’s advertising business is on the upswing after three straight quarters of declines. That’s a sign of hope for creators—especially after YouTube’s lackluster results Tuesday. On Wednesday, the Facebook parent company’s revenue rose 3% to $28.6 billion during the first quarter compared to the same period last year.
Meta is also signaling good news ahead: It projects second-quarter revenue growth will increase by as much as 15.5%. The stock rose in after-hours trading on Wednesday.
The company’s call with investors was dominated by talking about artificial intelligence, which could include introducing “AI agents” or chatbots, CEO Mark Zuckerberg said. Meta is exploring chat experiences in WhatsApp and Messenger, visual creation tools for posts on Facebook and Instagram and ads, and over time, video as well. “I expect that these tools will be valuable for everyone from regular people to creators to businesses,” he said.
Zuckerberg disputed media reports that the company was backing off from the metaverse, a more immersive version of the internet. “A narrative has developed that we’re somehow moving away from focusing on the metaverse vision, so I just want to say upfront that that’s not accurate,” he said. “We’ve been focusing on both AI and the metaverse for years now, and we will continue to focus on both.”
Creators weren’t much of a topic, a contrast with calls over the last two years. Meta CFO Susan Li did point to a challenge with Reels: People view a Reel for longer than disappearing Stories or a post on the feed, resulting in fewer opportunities to serve ads between posts. “That will make it likely more challenging to close the monetization efficiency gap than it was with Stories,” she said on the call.
Zuckerberg also took the opportunity to point out a key new stat: Facebook now has 200 million daily active users in the U.S. and Canada. Is it just me – or was that a subtle jab at arch rival TikTok? The short-form video app recently announced it has 150 million monthly active users in the U.S.
MY thoughts：
Instagram chief Adam Mosseri’s memo to employees suggests that the company is restructuring its product teams to prioritize projects that give everyone a chance to contribute meaningfully. The restructuring will include four product groups, namely Sharing, Home, Communities, and Business. The memo outlines each team’s focus, indicating Instagram’s primary priorities as a company, including creators and teens, entertainment, and connecting people. Mosseri’s memo also announced personnel moves, including the appointment of Connor Hayes to lead product and design for Meta’s Generative AI organization.
Meta projects an increase in revenue growth for Q2, with CEO Mark Zuckerberg discussing the company’s focus on both AI and the metaverse. Creators were not a significant topic during the call with investors, but CFO Susan Li pointed out a challenge with Reels, where people view a Reel for longer than disappearing Stories or a post on the feed, resulting in fewer opportunities to serve ads between posts. Zuckerberg also took the opportunity to point out that Facebook has 200 million daily active users in the US and Canada, which may have been a subtle jab at rival TikTok’s 150 million monthly active users in the US.
Citation：https://www.theinformation.com/articles/instagram-reshuffles-internal-teams-metas-ad-business-recovers?rc=ixubfq
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