Facebook’s owner company Meta is reportedly planning to begin on of the largest lay-offs the history that will affect thousands of employees.
US media reported last weekend that job cuts could be announced as early as Wednesday. Amid
Meta’s disappointing third quarter results, CEO Mark Zuckerberg said headcount could be down.
“In 2023, we will are going to focus our investments on some high-priority growth areas,” he said.
Facebook Meta layoffs 2022
Meta employs approximately 87,000 people worldwide across various platforms such as Facebook, Instagram and WhatsApp. The meta layoffs 2022 plan follows problems across the technology industry as the industry grapples with slowing global economic growth. This decision is expected to affect many thousands.
Zuckerberg (The CEO of Meta) said that he expects some of the teams to “flatten or shrink” next year. Which is a clear indication of coming meta facebook cuts.
“Overall, at the end of 2023 we expect Meta to be similar or slightly smaller organization than we are today,” he added.
Alphabet’s ad-supporting platforms like his Facebook and Google are struggling with advertiser budget cuts as they struggle with inflation and rising interest rates.
Last Thursday, Silicon Valley companies Stripe and Lyft announced massive layoffs, and Amazon announced a hiring freeze at its headquarters.
Twitter last week laid off about half of its 7,500 employees since being acquired by Elon Musk.
Not only is the global economy a concern for Meta, but there is also competition from TikTok, privacy changes by Apple, concerns over huge spending on the Metaverse, and ever-present regulatory threats.
Meta Layoffs Reason
Zuckerberg said he expects the investment in the Metaverse to take about 10 years to show positive results.
In the meantime, he says the team needs to be reorganized to cut costs, which may affect thousands its workforce.
Social media companies cut plans to hire engineers by at least 30% in June, and Zuckerberg warned employees to prepare for a recession.
Meta’s shareholder Altimeter Capital Management previously said in an open letter to Zuckerberg that the company needs to cut and streamline hiring and investments. He added that Meta lost investor confidence as it increased spending and started focusing on the Metaverse.
In his one year, the company’s market value fell to $600 billion (£524 billion).
Big Tech feels the pinch of a global recession.
The reason is that many of these giants, including Meta, rely on money from digital advertising, which has raised billions of dollars to date. This is the reason why platforms like Facebook, Instagram and Whatsapp are free for users. They provide their data and information and watch the ads that appear.
Some funds are still growing, so don’t feel too sorry. The problem is that most of the money doesn’t come from the big brands, but from the millions of small businesses that spend small amounts on a regular basis. Services like Facebook marketplace (Facebook-marketplace) are expected to be affected.
With rising costs and less affluent customers hurting revenue, these companies will first try to cut marketing budgets. Public companies like Meta are required to publish their financial details every three months.
Someone who was with Mark Zuckerberg when he did his last job a few weeks ago told me, “It didn’t look like it used to.”
And now he’s reportedly planning the biggest layoff in his 18-year history in the meta.
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