Facebook’s parent company Meta has informed 87,000 employees that it plans to lay off thousands of employees over the next year, following Twitter’s lead. With thousands of potential outages, Facebook appears to be outperforming its flying rival. The dismissal of employees may begin on Wednesday of this week, according to informed sources. 87,000 employees are mentioned in the ad;
In 2023, we will focus our investments on a small number of high-priority growth areas. So this means that some teams will grow significantly, but most others will stay the same or shrink next year. Overall, we expect to end 2023 with roughly the same size or even smaller organization than we have today.
Meta is planning massive layoffs this week rather than next year, other sources said, in what could be the biggest round in a recent series of tech job cuts after the industry grew rapidly during the pandemic. The layoffs are expected to affect thousands of employees and are expected to be announced soon, the people said. Meta reported more than 87,000 employees at the end of September. Company officials have already told employees to cancel non-essential travel beginning this week, the people said.
If Meta decides to cut the workforce, it will be the first major headcount reduction in the company’s 18-year history. While based on a lower percentage of Twitter layoffs last week, which affected about half of that company’s workforce, the number of Meta employees expected to lose their jobs could be the largest to date. date at a Be a big tech company in a year. . which has seen a decline in production in the tech industry.
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Meta’s chief product officer, Chris Cox, hinted at the move in June this year, warning employees of “serious times ahead” and saying they must “perform smoothly in a slower growth environment.” Firing Facebook is the only way for this company to survive.
CEO Mark Zuckerberg was much more forthright about Facebook’s approach to this. An internal question-and-answer session revealed that the executive said “there are probably a number of people in the company who shouldn’t be here.” He also halted the hiring about two months ago, warning that the company could downsize in the near future.
Meta spokesperson, referring to CEO Mark Zuckerberg’s recent statements that;
The company will focus our investments on a small number of high-priority growth areas. So this means that some teams will grow significantly, but most others will stay the same or shrink next year. The company’s third-quarter earnings are due Oct. 26. “All in all, we expect to end 2023 with roughly the same size or even smaller organization than we are today.”
The real reason for Facebook’s layoffs is that the tech giant began hiring during the pandemic as more lives and businesses shifted online. The company added more than 27,000 employees in 2020 and 2021 combined, adding 15,344 more in the first nine months of this year, nearly a quarter from the most recent quarter.
Meta’s shares have fallen more than 70% this year. The company has highlighted a worsening macroeconomic trend, but investors have also been concerned about its spending and major threats to its social media business. Business growth has stalled in many markets amid fierce competition from TikTok, and Apple’s requirement that users opt-in to track their devices has curtailed the ability of social media platforms to target ads.
Altimeter Capital, an investment firm, said in an open letter to Zuckerberg that Meta had had to cut staff and scale back its ambitions, reflecting growing shareholder discontent. Meta’s expenses have also risen sharply, causing its free cash flow to drop 98% in the most recent quarter. Some of the company’s costs stem from heavy investments in additional computing power and artificial intelligence needed to further develop Reels, Tok-tok’s short-form video platform on Instagram, and target ads with less data.