Social media company Meta has planned to cut its expenses as its revenue is falling. Thousands of employees will lose their jobs this week.
Earlier this week, Twitter fired most of its employees, as the number was around 50%. Compared with Twitter, Meta’s layoff will be smaller, but the social media company has confirmed that there will be thousands of job cuts. Right now, Meta has a total of 87000 working employees, and if they lay off thousands of jobs, then the lost jobs would be “Largest to date at a major technology corporation in a year that has seen a tech-industry retrenchment.”
According to The Washington Post, the layoff process will start on Wednesday, November 9. A spokesperson said about the company’s focus, “Investments on a small number of high priority growth areas.” But, there were no confirmed statements about firings. Senior managers of the company told the employees not to travel at the beginning of this week.
Recently, the company’s revenue was not as expected for two straight financial quarters. There was a meeting in August where Mark Zuckerberg said, “bunch of people at the company who shouldn’t be here and he is okay if workers think they don’t belong at Meta.” So, there was a hint about the job cuts. And now it is really happening.
Meta will cut its expenses by 10 percent through the layoffs. The company is blaming the macroeconomic situation. While the COVID lockdown, the tech giants hired 27,000 employees in the last two years. Right now, there is inflation, ATT (Apple and TikTok’s App Tracking Transparency), and the Russia-Ukraine war. And all these things are challenging the growth of Meta.
Also, there is a huge Metaverse project. Zuckerberg also said, “I get that a lot of people might disagree with this investment. People are going to look back on decades from now and talk about the importance of the work that was done here.”