The Wall Street Journal reported on Sunday, citing people familiar with the situation, that Meta Platforms Inc. plans to start mass layoffs this week that will affect thousands of employees. An announcement is expected as early as Wednesday.
Meta chose not to respond to the WSJ article.
In October, Meta, the parent company of Facebook, predicted a weak holiday quarter and significantly higher costs in 2019, which will reduce Meta's stock market value by about $67 billion and add to the more than half a trillion dollars in value already lost this year.
The unimpressive prognosis comes as Meta struggles with the slowing global economy, TikTok's competition, Apple's privacy changes, worries about massive spending on the metaverse, and the constant threat of regulation.
According to Chief Executive Mark Zuckerberg, it will take about ten years for the investments in the metaverse to pay off. To cut costs in the interim, he was forced to halt hiring, cancel projects, and rearrange teams.
"In 2023, we're going to focus our investments on a small number of 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. 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 reduced its plans to hire engineers by at least 30% in June, and Mark Zuckerberg had advised staff to prepare for a downturn in the economy.
In a previous open letter to Mark Zuckerberg, Meta's shareholder Altimeter Capital Management stated that the company needed to streamline by eliminating positions and capital expenditures. They also stated that investors had lost faith in Meta as a result of its increased spending and pivot to the metaverse.
As global economic growth slows as a result of higher interest rates, rising inflation, and a European energy crisis, several technology companies, including Microsoft Corp., Twitter Inc., and Snap Inc., have reduced hiring in recent months.
(Source:www.theprint.com)
Meta chose not to respond to the WSJ article.
In October, Meta, the parent company of Facebook, predicted a weak holiday quarter and significantly higher costs in 2019, which will reduce Meta's stock market value by about $67 billion and add to the more than half a trillion dollars in value already lost this year.
The unimpressive prognosis comes as Meta struggles with the slowing global economy, TikTok's competition, Apple's privacy changes, worries about massive spending on the metaverse, and the constant threat of regulation.
According to Chief Executive Mark Zuckerberg, it will take about ten years for the investments in the metaverse to pay off. To cut costs in the interim, he was forced to halt hiring, cancel projects, and rearrange teams.
"In 2023, we're going to focus our investments on a small number of 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. 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 reduced its plans to hire engineers by at least 30% in June, and Mark Zuckerberg had advised staff to prepare for a downturn in the economy.
In a previous open letter to Mark Zuckerberg, Meta's shareholder Altimeter Capital Management stated that the company needed to streamline by eliminating positions and capital expenditures. They also stated that investors had lost faith in Meta as a result of its increased spending and pivot to the metaverse.
As global economic growth slows as a result of higher interest rates, rising inflation, and a European energy crisis, several technology companies, including Microsoft Corp., Twitter Inc., and Snap Inc., have reduced hiring in recent months.
(Source:www.theprint.com)
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