USA: The Meta Group is preparing for mass layoffs according to the Wall Street Journal

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It may be the biggest layoff plan in the industry, according to the newspaper report, after the pandemic has led to an increase in revenue, as well as staff, at businesses in the sector.

Meta Group (Facebook, Instagram) is expected to announce the layoffs of thousands of employees starting this week, according to the Wall Street Journal, as several companies in the technology sector are laying off some of their staff amid the financial crisis.

It may be the biggest layoff plan in the industry, according to the newspaper report, after the pandemic has led to an increase in revenue, as well as staff, at businesses in the sector.

The Meta Group employed around 87,000 people worldwide as of September 30.

During the recent presentation of disappointing quarterly operating results, the group’s chief Mark Zuckerberg said that the staff will not increase before the end of 2023, instead it is expected to decrease slightly.

According to the Journal’s sources, the layoff plan is expected to be announced on Wednesday; it will be the first in the social networking giant’s history and will affect “several thousands” of workers.

Last Thursday, two Silicon Valley companies, Stripe and Lyft, announced large-scale layoffs, while retail layoff giant Amazon froze hiring.

The Twitter company, which was just acquired by Elon Musk, will lay off about half of its 7,500 employees.

Platforms, whose economic model relies on ad revenue, are being hit by ad spending cuts amid inflation and rising interest rates.

Meta Group saw its net profit collapse to $4.4 billion in the third quarter (–52% year-on-year).

“We’re facing a volatile macroeconomic environment, increased competition, problems with ad targeting, and escalating costs for our long-term investments, but I have to say that our products have the potential to do better than some of the comments suggest,” reassured Mark Zuckerberg. in late October, during a conference call with analysts.

But the Californian group’s stock fell 24.56% the next day on Wall Street.

In one year, the Meta group has lost $600 billion in capitalization.

The group has been causing concern in the markets since the beginning of the year, when it announced that it was losing users on its main social networking platform Facebook for the first time.

The expensive investments to build the “metaverse”, which is presented as the future of the internet, have not reassured investors, who are skeptical about the group’s ability to generate significant revenue from this parallel virtual universe.

RES-EMP

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