Following in the footsteps of Twitter, the parent company of Facebook, Meta, is preparing to become a member of the so-called “huge layoff club.” They have informed their 87,000 employees that Facebook plans to lay off tens of thousands of workers. On the other hand, it would seem that Facebook is going above and beyond its bird competitor by offering thousands of potential cut-offs. According to reports from sources with knowledge of the situation, the firings may start as soon as Wednesday of this week. The following was included in the notice sent to those 87,000 employees:
“Starting in 2023, we plan to concentrate our financial resources on a select group of high-priority expansion locations. This indicates that certain clubs will have significant growth over the next year, while most other teams will either remain stable or experience a decline. We anticipate that by the end of 2023, our organisation will be around the same size as it is now or perhaps smaller than we are.
According to other sources, Meta is planning to begin large-scale layoffs this week instead of next year. This round of layoffs could be the largest round in the recent spate of tech job cuts after the industry’s rapid growth during the pandemic and the largest round in the recent spate of tech job cuts. According to the persons, it is anticipated that many thousands of workers will be affected by the layoffs. A statement about the matter is scheduled to occur as soon as Wednesday. At the end of September, Meta claimed more than 87,000 people working for it. People say that company management has already urged staff to cancel any trip plans that are not necessary starting this week.
If Meta goes through with the layoffs, it will be the first time in the company’s 18-year existence that there has been a significant drop in the number of employees. Although the layoffs at Twitter Inc. this past week affected approximately half of that company’s workforce, the number of employees at Meta who are expected to lose their jobs could be the largest to date at a major technology corporation during a year that has seen a reduction in the technology industry. This is even though the percentage of Twitter Inc. employees who lost their jobs was smaller.
In June of this year, Chris Cox, the chief product officer of Meta, dropped hints about this upcoming shift. He cautioned staff that “serious times” were ahead and that they needed to “perform perfectly in an environment of slower growth.” The only way for Facebook to stay in business is to start laying off employees.
Mark Zuckerberg, the company’s CEO, was far more forthright about Facebook’s stance on the issue. During a question and answer session held internally, it was revealed that a firm official had said, “there are a lot of individuals at the company who shouldn’t be here.” Additionally, he stopped the firm from recruiting new employees around two months ago and warned that the business would reduce its workforce in the not-too-distant future.
In response to the recent comments made by Chief Executive Mark Zuckerberg, a spokesperson for Meta refused to comment on the matter.
“The corporation will concentrate its efforts on a limited number of high-priority sectors of the economy,” said the CEO. This indicates that certain clubs will have significant growth over the next year, while most other teams will either remain stable or experience a decline. The results call for the company’s third quarter, which occurred on October 26. “Overall, we anticipate that by the end of 2023, our organisation will either be around the same size as it is now or even a somewhat smaller size than we are now,”
The true explanation behind Facebook’s recent round of layoffs is that the digital company went on a recruiting binge during the epidemic in response to the increasing prevalence of online life and commerce. It gained more than 27,000 workers in 2020 and 2021 combined, as well as 15,344 in the first nine months of this year, with around one-fourth of that number occurring during the most recent quarter.
The share price of Meta has dropped by more than 70 per cent so far this year. The firm has brought attention to worsening trends in the macroeconomic environment. Still, investors have also been worried about the company’s expenditure and risks to the company’s core social network business. The ability of social media platforms to target advertisements has been hindered due to Apple Inc.’s requirement that users opt into the tracking of their devices. This has resulted in growth for that company’s business slowing down in many markets due to the intense competition from TikTok.
In light of the growing dissatisfaction among shareholders, the investment firm Altimeter Capital said in an open letter to Mark Zuckerberg that Meta should reduce the size of its workforce and scale down its objectives for the metaverse. In addition, Meta’s costs have increased substantially, which has resulted in a decrease of 98% in the company’s free cash flow over the most recent quarter. A portion of the company’s spending is attributable to its substantial investments in the additional computing power and artificial intelligence required to develop other Reels, which is Meta’s short-form video platform on Instagram similar to TikTok, and to target advertisements with fewer data points.
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