Meta, the parent company of Facebook will be laying off employees, which has never happened in history. “The company battles with the fear of a forthcoming economic recession” rendering to the Wall Street Journal.
The layoff is expected to happen today 9th of November, 2023. This will affect over a thousand workers, whereas Meta has employees of more than 87,000.
In the last conference call, which occurred last month where the earnings of the third quarter were discussed CEO Mark Zuckerberg said that he supposes at end of 2023, “the company will be slightly reduced or around the similar size that it is today.”
There was a drop in profit because the Tech giant company invested billions in building a futuristic internet called metaverse, Apple’s ios Privacy changes, and strict spending by the advertisers due to the competition from rivals like Tiktok with all of these we can conclude this is the reason Meta is deciding to layoff staffs.
Recently Meta was boasting more than 1 trillion dollars but currently, Meta’s value is estimated to be around $250 billion meta took a bold step in the stock market as it opened more than 5% earlier this week.
“I’m sharing this information in which I will be making difficult changes to this great company, 11,000 or more of our talented staff will be laid off reducing the size of our team by 13%,” said Mark Zuckerberg.
“The layoff will hit several departments of the company, but the organization will consider hiring lesser people by next year” he added.
He went further saying “I am going to take accountability for making these decisions, I know this is tough for everyone, but I’m so sorry”. During the Covid Pandemic, there was massive growth in social media which led to predictions that the change would be permanent in post-pandemic. So, I took some steps to increase our investments, sadly it didn’t turn out the way I expected.” He said remorsefully.
Several tech companies are now concerned about staffing due to the uncertain economic macroclimate, and some announced job cuts in recent months. Earlier last week Amazon the e-commerce giant announced to the public about stopping corporate hiring not for weeks but for months. The Senior Vice President of people experience and technology at Amazon Beth Galetti released a memo uploaded to their websites he said “Recently, we have taken this same approach in some of our other businesses. “We will continue to monitor the economy and apply adjustments that we assume to make sense” he added.
Twitter took the same approach recently Facebook’s rival laid off thousands of staff across different departments which are the ethical AI, public policy team, communication and marketing, and others. It was confirmed, when some of the ex-staff at Twitter made a tweet saying they have been knocked out from the company email accounts while some sent love emojis stating they are out of the company.
In conclusion, Mark said the company would make many changes around cost-cutting.