The company’s projected headcount decrease is anticipated to be the biggest in a sequence of recent tech layoffs.
Following Twitter’s major layoffs, which generated a sensation in the internet industry, it looks that Meta is following suit. According to a report from the Wall Street Journal, the owner of Facebook and Instagram will begin layoffs in the second week of November.
Mark Zuckerberg, CEO of Meta, had said that the social media giant’s workforce might be reduced next year. The corporation was also concentrating on the rationalization of workplace space.
Meta reported approximately 87,000 workers at the end of September, during which the business suspended employment. The corporation also requested that any non-essential travel be cancelled beginning this week. The layoff is likely to affect thousands of employees, and the news may come as early as Wednesday.
The announcement comes at a time when tech titans are attempting to adapt to tumultuous times due to declining growth. The share price of Meta fell by more than 70%. Its third-quarter revenue decreased by 4%, but its expenditures and expenses increased by 19% year-over-year to more than $22 billion. In addition, operational income decreased by 46% from the prior year to $5.66 billion.
In the third quarter, Meta’s operating margin decreased to 20% from 36% a year earlier, while the company’s total net income fell 52% to $4.4 billion. As a consequence, the corporation was allegedly tightening its cost management and monitoring its headcount. On the company’s third-quarter results last month, Facebook CEO Mark Zuckerberg stated:
“This suggests that certain clubs will see significant growth over the coming year, while the majority of teams will either remain stable or decline. We anticipate that by the end of 2023, our organization will be around the same size or perhaps slightly smaller than it is now.”
Meta is not alone in enduring the difficult macroeconomic situation. Layoffs at Twitter are far deeper. After Elon Musk’s disastrous takeover, the microblogging site let off almost fifty percent of its staff, including CEO Parag Agrawal, CFO Ned Segal, and legal affairs and policy leader Vijaya Gadde.
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