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Meta Platform Inc. plans to begin large-scale layoffs this week, which will affect thousands of workers, the Wall Street Journal reported on Sunday (November 6), citing sources.
The Wall Street Journal also reported that Meta could announce layoffs on Wednesday (November 9). However, Meta has not commented on this report so far.
Earlier, last October, the Meta Authority predicted a major financial loss this year. Declining economic growth, competition with TikTok, massive spending on Metaverse, changes in Apple’s privacy policy, and many other factors have led to a depressing picture of Meta’s economic losses.
In such a context, Mark Zuckerberg, the chief executive of the company, said that it will take about a decade to get the results of investment in Metaverse. Because of this, he has already had to close various projects along with new hires and ‘reorganize’ different teams at Meta to cut costs.
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Regarding the overall situation of the organization at the end of October, he said, in 2023, we will give priority to investing in some high-growth sectors only. This means that the range of some groups will increase significantly. But most other teams will stay the same or ‘shrink’ next year.
Zuckerberg also said, “Overall, we’ll end up in 2023 as roughly the same size or a slightly smaller company than we are today.”
Warning workers of an economic downturn, Meta cut engineer hiring rates by 30 percent last June.
In a recent open letter to Mark Zuckerberg, Meta’s shareholder Altimeter Capital Management said that Meta has lost investor confidence due to increased spending. In order to maintain cash flow, the company needs to reduce capital expenditure as well as jobs.
A number of technology companies, including Microsoft Corp, Twitter Inc and Snap Inc, have cut staff and cut hiring in recent months as global economic growth has slowed due to high interest rates, rising inflation and the energy crisis in Europe.
Meta Platform Inc. plans to begin large-scale layoffs this week, which will affect thousands of workers, the Wall Street Journal reported on Sunday (November 6), citing sources.
The Wall Street Journal also reported that Meta could announce layoffs on Wednesday (November 9).
However, Meta has not commented on this report so far.
Earlier, last October, the Meta Authority predicted a major financial loss this year. Declining economic growth, competition with TikTok, massive spending on Metaverse, changes in Apple’s privacy policy, and many other factors have led to a depressing picture of Meta’s economic losses.
In such a context, Mark Zuckerberg, the chief executive of the company, said that it will take about a decade to get the results of investment in Metaverse. Because of this, he has already had to close various projects along with new hires and ‘reorganize’ different teams at Meta to cut costs.
Zuckerberg also said, “Overall, we’ll end up in 2023 as roughly the same size or a slightly smaller company than we are today.”
Warning workers of an economic downturn, Meta cut engineer hiring rates by 30 percent last June.
In a recent open letter to Mark Zuckerberg, Meta’s shareholder Altimeter Capital Management said that Meta has lost investor confidence due to increased spending. In order to maintain cash flow, the company needs to reduce capital expenditure as well as jobs.
A number of technology companies, including Microsoft Corp, Twitter Inc and Snap Inc, have cut staff and cut hiring in recent months as global economic growth has slowed due to high interest rates, rising inflation and the energy crisis in Europe.