Meta set for change with workforce layoff
Meta, Facebook’s parent company, plans to begin its first major layoffs to cut its workforce amid a struggling economy.
According to the Wall Street Journal, the company’s move comes as it grapples with declining business and growing fears of a recession.
The significant layoff is expected to affect thousands of employees.
According to the Journal, the layoffs could begin this week, citing anonymous people familiar with the case.
A September SEC filing also shares that Meta has over 87,000 employees.
Read also: Meta to make changes after stocks fall 17%
Last month, Meta held a conference call discussing the third quarter results.
CEO Mark Zuckerberg said he expects Meta to end 2023 with the same size or smaller organization than today.
While it’s not certain yet, the potential cuts could be linked to tighter budgets for advertisers.
Additionally, Apple’s iOS privacy changes have affected the company’s core businesses.
Last month, Meta reported a sales decline in the second quarter and reported that profits had halved from 2021.
The drop in profits is caused by the billions the company spent to build the metaverse.
The metaverse is what many suggest is the future of the Internet; however, it is probably years away from operating.
The social media giant had a market cap of over $ 1 trillion in 2021, but it has declined.
Meta is currently worth over $250 billion.
When news of the company’s job cuts surfaced, the company’s shares opened more than 5% higher on Monday morning.
Read also: UK gives breakup order, Meta to comply and sell Giphy
Meta isn’t the only company in the tech industry rethinking its workforce.
Many companies in what was once considered an untouchable industry have recently announced staff freezes or job cuts.
The decision comes as a surprise as many grew rapidly during the pandemic.
Last week, Lyft announced that it would lay off 13% of its employees.
Payments processor Stripe also said it would cut 14% of its workforce.
Additionally, e-commerce giant Amazon has announced that it will pause corporate hiring.
Facebook’s rival Twitter made heavy cuts Friday after Elon Musk bought the social media company.
Twitter’s cuts have impacted its AI, marketing and communications, research and public policy team, just to name a few of the departments involved.
According to Bloomberg, Twitter asked dozens of laid-off employees to return.