Meta, the parent company of Facebook and Instagram, is expected to report a steep decline in profits when it releases its first-quarter results, with analysts predicting earnings of $5.2bn, a drop of around 30% year on year. Revenue is predicted to fall just 1%, to $27.7bn. This comes as the firm pivots towards artificial intelligence as a source of growth, particularly for its metaverse ambitions, which have struggled to gain traction. While Facebook reported a two percent rise in monthly active users over the final quarter of the year, pressure from the rise of TikTok has dented ad revenues, which dropped from $115bn to $114bn last year. Layoffs, including 10,000 employees sacked last month, are part of an effort to streamline operations and focus on AI development. In March, the company also cut jobs and cancelled lower-priority projects.

(By André Beganski)