Meta Ready For Mass Layoffs: Report
- Social media platform Meta has plans to trim staff in the second week of November, as per a report, following a surge in expenses by over 19% year over year to over $22 billion.
- It is expected that the layoffs will be in thousands and the announcement will be coming sooner than expected for the workers, possibly Wednesday.
- Meta founder and CEO Zuckerberg, revealed earlier this year that the company’s staff will be reduced in 2023 and rationalizing office space was yet another area that the company was focusing on.
The parent company of social media platforms Facebook and Instagram, Meta, has plans to cut off a huge number of employees as the global economic crisis prevails and revenue has also declined for several firms. Additionally, the social media platform has plans to trim staff in the second week of November, as per a report from the Wall Street Journal.
While the recent layoffs have haunted the crypto space, it is crucial to note that almost every tech firm has also let go of many employees. There are several reasons as to why companies are letting go of their employees ranging from quarter losses to rapid expansion but one thing is clear, it is not only the crypto world that is letting go employees.
As per another report, Meta founder and CEO Zuckerberg, revealed earlier this year that the company’s staff will be reduced in 2023 and rationalizing office space was yet another area that the company was focusing on.
Wall Street Journal pointed out in its report that at the end of September, Meta had 87,000 employees and the company decided to stop its hiring spree and asked its employees to cancel any non-essential travel starting this week. It is expected that the layoffs will be in thousands and the announcement will be coming sooner than expected for the workers, possibly Wednesday.
Meta has been struggling recently as its operating margin also declined to 20% from 36% a year earlier and the company’s net revenue was down 52% to $4.4 billion in the third quarter. The company’s share has declined by over 70% in the last few months following the announcement of Facebook rebranding to Meta to focus on metaverse and Web3.
The fall in revenue mentioned above was coupled with a surge in expenses by over 19% year over year to over $22 billion. Moroever, the operating income fell 46% from the previous year to $5.66 billion. The company has just reasons to cut costs and monitoring head count. At the tech firm’s third-quarter earnings last month, Zuckerberg said:
“So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
Interestingly, Meta is not the only social media and tech firm to layoff employees. Social networking platform Twitter also saw a similar mass layoff when it was taken over by Elon Musk, the CEO and founder of Tesla. As per an earlier report from BitcoinWisdom, Twitter has also dropped plans to debuting a crypto wallet.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
