Facebook parent Three is preparing large-scale layoffs this week: News | World news
Meta Platforms Inc is planning to begin massive layoffs this week that will affect thousands of workers, The Wall Street Journal reported on Sunday citing people familiar with the matter, with an announcement planned for early Thursday.
Meta declined to comment on the WSJ report.
Facebook parent Meta in October predicted a weak holiday quarter and significantly more costs next year, wiping about $67 billion off Meta’s stock value, adding more than half a trillion dollars in value already lost. this year.
There’s a disappointing outlook as Meta grapples with slowing global economic growth, competition from TikTok, privacy changes from Apple, concerns about massive spending on blockchain and the constant threat of regulation.
CEO Mark Zuckerberg has said he expects the metaverse investments to take about a decade to bear fruit. In the meantime, it has had to freeze hiring, shut down projects and restructure teams to cut costs.
“In 2023, we will focus our investments on a small number of key growth areas. So that means that some groups will grow meaningfully, but most other groups will remain flat or shrink year on year. coming. Overall, we hope. to end 2023 as either roughly the same size, or even a smaller organization than we are today,” Zuckerberg said on the last earnings call in late October.
The social media company in May cut plans to hire engineers by at least 30%, with Zuckerberg warning workers to brace for the economic downturn.
The director of Altimeter Capital Altimita’s shareholder in an open letter to Mark Zuckerberg has already said that the company needs to be rejuvenated by cutting jobs and capital expenditure, adding that Meta has lost investor confidence as it has spent money and pivoted to the metaverse.
Many technology companies, including Microsoft Corp, Twitter Inc and Snap Inc have cut jobs and cut hiring in recent months as global economic growth slows due to higher interest rates, inflation and the energy crisis in Europe.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Diane Craft)
