Meta, Facebook’s parent company, is planning its first major layoffs in its history as the company grapples with shrinking business and fears of a looming recession, according to The Wall Street Journal.
Job cuts are expected to affect thousands of workers and could start as early as this week I mentioned the magazine Over the weekend, citing unnamed people familiar with the matter. Meta has a staff of more than 87,000 people, according to SEC September filing.
Meta declined to comment on the report.
On a conference call last month to discuss its third-quarter earnings results, CEO Mark Zuckerberg said he expects the company to end in 2023 “either about the same size, or even as a slightly smaller organization than we are today.”
The potential cuts come as advertisers’ budgets tighten and Apple’s iOS privacy changes impact Meta’s core business. Last month, the company recorded a decline in its second quarterly revenue and announced it Profit cut in half from the previous year. The drop in profitability is largely due to the billions Meta is spending to build a future version of the Internet called the metaverse that will likely remain far away years later.
Once you are proud of your market capitalization More than 1 trillion dollars Last year, Meta was now valued at around $250 billion. (After reports of job cuts, Meta stock opened above 5% on Monday morning).
Meta isn’t the only tech company said to be rethinking hiring. In a stunning transformation of an industry sometimes thought untouchable, a number of technology companies It has announced hiring freezes or job cuts in recent months, often after seeing rapid growth during the pandemic.
Last week, flight sharing company Lyft said it will subtract 13%. of employees, and payments processing company Stripe said it would cut 14% of its staff. On the same day, e-commerce giant Amazon said it is Implementation of a pause on corporate recruitment.
Making Twitter a Facebook Competitor sweeping cuts It crossed the company on Friday under the direction of its new owner, Elon Musk. The cuts affected the ethical AI team, marketing and communications, research and public policy, among other departments.
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