16 Aug 2020
Posted in Business Fundamentals
Facebook recalibrating focus to financial services with Novi and Jio; hires cautiously, finds GlobalData
Facebook’s job postings plunged drastically from 1,102 in January to 551 in July, according to GlobalData’s job analytics database, likely attributed to challenging market conditions due to the COVID-19 outbreak. However, there have been some notable senior-level job postings in advertising, e-commerce and payments space in recent months.
Aurojyoti Bose, Lead Analyst at GlobalData, says: “In support of the Stop Hate for Profit campaign, several leading businesses such as Ford, Adidas, Diageo, HP, Coca-Cola, Unilever, Starbucks and Levi Strauss have already joined the league of companies pulling out advertising from Facebook. Although it has not yet had a big impact on the company’s earnings, Facebook seems to be concerned that more companies will join the bandwagon, prompting the social media giant to hire senior personnel in the advertising space. While the company remains focused on advertising, it is also seeing new avenues in e-commerce and payments.”
Facebook Financial, a new division created to add payments and financial services to existing products, is expected to help drive commerce and advertising bottom line. Facebook’s focus on the e-commerce and payment space is also reflected in its announcement of investment in Jio platforms (India), following which JioMart is delivering groceries to its customers from nearby stores. The deal is seen as a strategic move by Facebook towards the roll-out of its payment platform WhatsApp Pay in the country, and JioMart meeting a timely demand for online grocery delivery services during COVID-19 outbreak. Furthermore, Facebook has relabeled Calibra, a new digital currency e-wallet, as Novi.
In recent months, Facebook has posted senior-level jobs in payments, e-commerce and advertising. These include public policy director, Novi; treasury director, Calibra; director, business development – Calibra financial services; director of WhatsApp payments in India; product marketing director of payments and commerce in the US; PM lead director of e-commerce marketplace in the US; director of payment partnerships for the APAC region; revenue accounting director (ads) in the US; director of product management for classifieds & ads; data engineering director (ads); and director of the advertising onboarding programs and small business group.
Bose concludes: “Facebook is likely to stay focused on keeping advertising services revenue intact while also pursuing its payments and e-commerce strategy. Its hiring trend is also expected to continue in line with this.”