Meta braces for large-scale layoffs this week: report

Big Layoffs This Week at Facebook Parent Meta: Report

Meta Platforms Inc plans to begin large-scale layoffs this week. (Representative)

Meta Platforms Inc plans to begin large-scale layoffs this week that will affect thousands of employees, The Wall Street Journal reported Sunday citing people familiar with the matter, with an announcement expected as early as Wednesday.

Meta declined to comment on the WSJ report.

In October, Facebook’s parent company Meta predicted a weak holiday quarter and significantly higher costs next year, wiping around $67 billion from Meta’s market value, adding to the value of more than half a trillion dollars already lost this year.

The disappointing outlook comes as Meta grapples with slowing global economic growth, competition from TikTok, privacy changes from Apple, concerns over massive spending on the Metaverse and the ever-present threat of regulation.

Chief Executive Mark Zuckerberg said he expects investments in the Metaverse to take about a decade to pay off. In the meantime, he had to freeze hiring, close projects and reorganize teams to cut costs.

β€œIn 2023, we are going to focus our investments on a small number of high priority growth areas, so that means some teams will grow significantly, but most other teams will remain stable or contract over the next year. Overall, we plan to end 2023 with either about the same size or even a slightly smaller organization than ours today,” Mark Zuckerberg said on the latest earnings call in late October.

The social media company had in June cut plans to hire engineers by at least 30%, with Mark Zuckerberg warning employees to prepare for an economic downturn.

Meta shareholder Altimeter Capital Management, in an open letter to Mark Zuckerberg, previously said the company needed to streamline by cutting jobs and capital expenditures, adding that Meta had lost investor confidence as it grew. spending and pivoting to the metaverse.

Several 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 rising interest rates, rising inflation and an energy crisis in Europe.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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