The Wall Street Journal on Sunday, citing people familiar with the matter, announced on Wednesday that Meta Platforms Inc. plans to launch massive layoffs this week, which will affect thousands of employees.
Meta declined to comment on the WSJ’s report.
Facebook parent Meta in October forecast a weak holiday quarter and significantly higher costs next year, wiping nearly $67 billion off Meta’s stock market value, adding more than half a trillion dollars to the value it already lost this year. Gone.
The gloomy outlook comes as Meta is slowing global economic growth, competition from TikTok, privacy shifts from Apple, massive spending on the Metaverse and concerns about the current threat of regulation.
Chief executive Mark Zuckerberg has said he expects the Metaverse investment to take about a decade to bear fruit. In the meantime, they need to reorganize teams to reduce hiring, close projects, and reduce costs.
“In 2023, we are going to focus our investments on a small number of high priority growth areas. This means that some teams will grow meaningfully, but most other teams will remain flat or shrink over the next year. Overall, We expect 2023 to end up being either roughly the same size, or even a slightly smaller organization than it is today,” Zuckerberg said on the last earnings call in late October.
The social media company cut plans to hire engineers by at least 30% in June, with Zuckerberg warning employees of an economic downturn.
Meta shareholder Altimeter Capital Management said earlier in an open letter to Mark Zuckerberg that the company needed to be streamlined by cutting jobs and capital spending, adding that Meta had lost investor confidence as it increased spending. and turned into the metaverse.
Several technology companies, including Microsoft Corp, Twitter Inc and Snap Inc, have cut jobs and scaled back hiring in recent months as global economic growth slows due to high interest rates, rising inflation and the energy crisis in Europe.
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