Meta Platform is planning to begin large-scale layoffs affecting thousands of employees, citing people familiar with the fact, with an announcement planned as early as possible. However, Meta declined to comment on it. So the article is about Facebook Reportedly Planning Mass Layoffs. Facebook parent Meta in October forecasted a weak holiday quarter and significantly more costs in 2023, wiping about $67 billion off Meta’s stock market value, adding to the more than half a trillion dollars in value already lost in 2021. The disappointing scenerio comes as Meta is contending with slowing global economic growth, competition from TikTok, privacy changes from Apple, concerns about massive spending on the metaverse, and the ever-present threat of regulation.
Chief Executive Mark Zuckerberg has said he expects the metaverse investments to take about a decade to bear fruit. In the meantime, he has had to freeze hiring, shutter projects, and reorganize teams to trim costs. “In 2023, we’re going to focus our investments on several high-priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. So in aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today,” Zuckerberg said on the last earnings call in late October.
The social media company had in June cut plans to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn. Meta’s shareholder Altimeter Capital Management in an open letter to Mark Zuckerberg, had previously said the company needs to streamline by cutting jobs and capital expenditure, adding that Meta has lost investor confidence as it ramped up spending and pivoted to the metaverse. Several technology companies, including Microsoft Corp, Twitter, and Snap, have cut jobs and scaled back hiring in recent months as global economic growth slows due to higher interest rates, rising inflation, and an energy crisis in Europe.
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