Meta, the parent company of Facebook, WhatsApp, and Instagram, also announced job cuts after Twitter. 11,000 Meta employees will lose their jobs. Layoffs followed the revenue's sharp drop.
It has never happened before at Meta that this many people have been let go. The fact that the action was taken after the number of employees rose to 87,314 this year is also notable. According to reports, the corporation has reduced employment by 13%. According to The Wall Street Journal, this week at Meta platforms there could be significant layoffs.
In the meantime, Mark Zuckerberg, CEO of Meta, expressed regret to the sacked workers. Additionally, Zuckerberg stated that the organization is fully accountable for the loss.
When the Covid epidemic first started, the corporation invested excessively. But things still did not turn out as predicted even after the pandemic. In addition to the fact that online sales have not resumed their prior patterns, Zuckerberg observed that revenues have fallen short of projections due to macroeconomic slowdowns, increasing competition, and losses in advertising revenue.
Zuckerberg had previously issued a warning that severe restrictions on Meta would be implemented at the end of September. In response, Meta stated that it would reduce expenses and reorganize teams in order to keep up with the evolving market.
It will probably take roughly ten years for the Metaverse investment to pay off. Therefore, he stated, hiring new personnel, cancelling projects, and reorganizing teams would all stop as part of cost-cutting.
In an earlier open letter to Zuckerberg, Meta's stakeholder Altimeter Capital Management stated that the company needs to streamline by reducing capital expenditure and employee salaries. Engineering hiring plans had already been scaled back by a certain percentage in June. Many technological firms, including Microsoft Corp., Twitter Inc., and Snap Inc., have restricted recruiting as global economic growth has slowed as a result of high-interest rates, increasing inflation, and Europe's energy crisis.