Tech

A cancelled conference and supply chain issues: How the coronavirus outbreak is affecting Facebook's business

facebook ceo mark zuckerberg
Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, U.S., October 23, 2019. REUTERS/Erin Scott
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Misinformation and rumours about the novel coronavirus outbreak are spreading on Facebook, prompting the social network to talk to the World Health Organization (WHO) about how to battle the fake news — but that's not the only way the virus has affected Facebook.

Like numerous companies, Facebook's core business has been impacted by the viral illness, which has sickened more than 64,000 people and killed nearly 1,500 over the past few months — from upsetting hardware supply chains to forcing it to cancel planned industry conference appearances.

Its effects on Facebook illustrate has the outbreak is disrupting global businesses, and how the issue might wreck further havoc if not contained in the months ahead.

Facebook's hardware supply chain has been affected

Like other tech companies, Facebook's supply chain for its virtual reality hardware is heavily reliant on Asian suppliers, which have been disrupted by the coronavirus. Oculus Quest, its latest VR headset, is facing shortages as a result.

"Oculus Quest has been selling out in some regions due to high demand. That said, like other companies we're expecting some additional impact to our hardware production due to the Coronavirus," a spokesperson said. "We're taking precautions to ensure the safety of our employees, manufacturing partners and customers, and are monitoring the situation closely. We are working to restore availability as soon as possible."

Facebook's Portal, a smart speaker and video-chat device, isn't currently affected by the outbreak.

Facebook employees are being advised against travel to China

Facebook is advising employees against traveling to China and requiring those who need to go to seek company approval in advance, Bloomberg previously reported.

Meanwhile, employees who have visited are being asked to work from home.

Facebook pulled out of a major tech conference

Facebook was one of numerous tech companies to pull out of Mobile World Summit, a major mobile industry event that was due to take place in Barcelona in late-February.

Facing widespread drop-outs, conference organisers GSMA made the unprecedented decision this week to cancel this year's event entirely.

It also cancelled its own San Francisco marketing conference

Facebook has cancelled a conference it had scheduled for mid-March.

The Global Marketing Summit, a 5,000-person San Francisco that was planned for March 9-12, will no longer go ahead, the company announced on Friday.

In a statement, spokesperson Anthony Harrison said: "Our priority is the health and safety of our teams, so out of an abundance of caution, we cancelled our Global Marketing Summit due to evolving public health risks related to coronavirus."

If the outbreak continues to spread over the next few months, it raises questions about the future of another, more significant Facebook event — F8. It's a developer conference that acts as Facebook's largest event of the year, and is scheduled for May.

Do you work at Facebook? Contact this reporter using a non-work device via encrypted messaging app Signal (650-636-6268), encrypted email (robaeprice@protonmail.com), standard email (rprice@bjinnox.com), Telegram/Wickr/WeChat (robaeprice), or Twitter DM (@robaeprice). PR pitches by standard email only, please.

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Rob Price was a senior correspondent at Business Insider, based in San Francisco. He wrote investigations and long-form features about platforms, people, and power in Silicon Valley.His stories variously led to attorney general investigations, large-scale internal reviews at major tech companies, high-profile personnel departures, citation by state and federal lawmakers, and the closure of a well-funded startup. His 2022 story on the Bitfinex hack is being adapted into a feature film, and in 2024 he received an SPJ NorCal Excellence in Journalism award for his reporting on AI and relationships.Rob's scoops and exclusive stories were cited by The New York Times, Bloomberg, the BBC, Associated Press, Reuters, CNBC, Politico, The Guardian, Axios, and many other national and international publications. His writing has also been published in or syndicated by The Washington Post, The Independent, Vice, Slate, and elsewhere, and he appeared on CNN, the BBC, CBS, Reuters, ABC Australia, and other broadcast media to discuss technology, business, and culture.He worked for Business Insider from 2015 to 2025. Prior to joining the features team, Rob covered Facebook and Silicon Valley, and before that wrote about tech business, policy, and the gig economy in London. Between September and October 2019, he was acting executive editor for Business Insider's UK bureau. He also sat on the board of directors for the San Francisco Press Club, the leading non-profit media advocacy group in the Bay Area, and was a volunteer crew member at the Marine Mammal Center, the world's largest animal hospital for marine mammals. You can contact Rob Price via email at robaeprice@gmail.com, or +1 650-636-6268 (Signal / WhatsApp / Cell). Selected stories:— They spoke out against their employer. Then they were hit with trade secrets suits. The rise of 'shadow stand-ins'App, Lover, Muse: Inside a 47-year-old Minnesota man's three-year relationship with an AI chatbotDeel Speed: The inside story of a $12 billion HR startup's breakneck growthPrivate islands, flying cars, and psychedelic parties: Inside the wild post-Google lives of Larry Page and Sergey Brin'I want your Instagram account': First came the threatening texts, followed by the SWAT teams. Then someone wound up dead.Inside Iconiq: How Mark Zuckerberg's banker built a secret Silicon Valley empire and made billionsGaia was a wildly popular yoga brand. Now it's a publicly traded Netflix rival pushing conspiracy theories while employees fear the CEO is invading their dreamsA drunken late-night assault allegation has roiled the secretive world of Mark Zuckerberg's private family office. Personal aides are speaking out about claims that household staff endured sexual harassment and racism from their colleagues.