Instagram Head Adam Mosseri Looks To Shift Base To London, Establish Biggest Overseas Engineering Hub
Meta Platforms Inc (NASDAQ: META) Instagram head Adam Mosseri looked to shift base to London, signaling a strategic shift for the social networking app that battled TikTok to win younger audiences, the Financial Times reports.
The move will effectively make the U.K. capital, parent Meta's biggest overseas engineering hub, and Instagram's base over the coming months.
Mosseri will relocate later this year and build out Instagram's presence in London by hiring more staff to work at Meta's new offices in King's Cross.
Last week Meta declared its first-ever quarterly revenue declined, citing macro pressures and Apple Inc's (NASDAQ: AAPL) privacy changes.
Mosseri's temporary relocation was partly due to his desire to live in London, FT writes.
The plans were also a cost-saving measure, as engineers in the U.K. were up to three times cheaper than in San Francisco.
Meta could also exploit the U.K. government's recent research and development tax credits overhaul.
Last week, Instagram reversed a change to its algorithm that prioritized short videos called Reels over static photos posted on the platform earning backlash from celebrities including Kylie Jenner and Kim Kardashian, who told it to "stop trying to be TikTok. I just want to see cute photos of my friends."
Critics alleged that the new algorithm generated mainly videos from influencers and advertising content instead of content from friends.
Earlier TikTok President and Needham found it futile for Facebook to emulate TikTok.
Facebook employees also were concerned over job cuts as high as 10%.
Price Action: META shares traded lower by 1.22% at $157.98 in the premarket on the last check Tuesday.
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