According to the Wall Street Journal, Meta platforms Inc. plans to start laying off many employees. Job layoffs might start as soon as this Wednesday. According to the article, the corporation has already instructed employees to postpone any unnecessary travel beginning this week.
After a significant decline in revenue at the parent company of Facebook and Instagram, CEO Mark Zuckerberg announced his strategy to restructure teams and slash personnel in September. Meta would be smaller in 2023 compared to this year. The layoffs occur as Meta battles mounting losses and significantly invests in expanding its metaverse company. Its stock price dropped 73% this year.
Consequences
The loss of jobs in Silicon Valley will increase due to the layoffs. After Elon Musk finalized his $44 billion acquisition of Twitter last week cut over 3700 jobs. Other firms that have cut staff or intended to do so include the hard disk manufacturer Seagate Technology Holdings Plc and the ride-hailing company Lyft Inc.
After June, Mr. Zuckerberg told employees at a session that there seemed to be likely several individuals at the firm who should not be in the company. As life and business migrated further online during Covid 19 pandemic, Meta, like other tech giants, went on a hiring binge. In 2020 and 2021, together, it hired more than 27000 workers. In the first nine months of this year, it recruited 15,344 workers – roughly one-fourth of those during the most recent quarter.
However, now the shareholders have been alarmed by the company’s expenditures and potential dangers to its leading social media company and the company’s highlighting of worsening macroeconomic conditions.
