According to the reports, Facebook’s parent meta is planning to begin widespread layoffs from the company. This huge step is meta’s plan to reduce costs after posting disappointing revenues and a drop in revenue in the third quarter. These cuts expects to affect about 10% of the company’s total workforce which is to be 87,000 in estimation.
Meta begins massive layoffs
The lowerings, part of the first major funding cut since the founding of the company in 2004, reflects a sharp slowdown in digital advertising earnings, an economy staggering on the point of the recession, and Zuckerberg’s heavy investment in a speculative virtual-reality push called the metaverse.
Chief Executive Officer Mark Zuckerberg confirms the news and takes the responsibility for it. He called the executives to prepare them for the cuts and told them to keep this news private.
Moreover, Mark Zuckerberg warned the employees in late September that the company is going to slash expenditures and reconstruct the teams. The Menlo Park, a California-based company, which also owns Instagram and WhatsApp, executed a hiring freeze, and the CEO said that Meta expected its headcount to be smaller in 2023 than it is this year.
Twitter’s follow-up
Meta’s job deductions follow the cutbacks at Twitter Inc. last week, which saw that company cut roughly 50% of its workforce following its sale to Elon Musk. Those layoffs were messy because many workers find out that they have lost their positions when they were removed from Space or Email. Musk said that these moves are important to stem losses on the social networking site. He later asked some of the fired employees to return to the company.
Snap Inc., the parent of rival app Snapchat, is also planning to do the same, saying in August that it would eradicate 20% of its total workforce.
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