Meta plans a massive layoff plan

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Meta plans a massive layoff plan

Mark Zuckerberg, CEO of Meta

Meta (Facebook, Instagram) plans to lay off thousands of people starting this week, according to Wall Street Journal(WSJ), at a time when several technology companies have just laid off part of their workforce in response to the economic crisis.

This could be the most significant social plan in the sector, according to the American daily, after the pandemic which largely benefited the growth of revenues, but also of the personnel of these companies.

Meta had some 87,000 employees worldwide as of September 30 .

During the recent publication of the latest disappointing quarterly results, boss Mark Zuckerberg mentioned that the group's staff should not increase by the end of 2023 and that it could decrease slightly.

According to WSJ sources, the social plan should be announced on Wednesday and several thousand employees will be affected by this first social plan in the history of the social networking giant.

Last Thursday, two Silicon Valley companies, Stripe and Lyft, announced sweeping layoffs, while Amazon froze hiring at its offices.

Upon taking power, billionaire Elon Musk dissolved Twitter's board of directors and fired the CEO and other executives.

Twitter, recently acquired by Elon Musk, has just laid off around half of its 7,500 employees. struggling with inflation and rising interest rates.

Meta saw its net profit melt to $4.4 billion in the third quarter (-52 % over one year).

We are facing an unstable macro-economic environment, increased competition, advertising targeting issues and rising costs for our long-term investments, but I must say that our products seem to be doing well. better than some comments suggest, tried to temper Mark Zuckerberg at the end of October, during the analyst conference.

The title of the Californian group, however, fell 24.56% the next day on Wall Street.

In one year, Meta has lost nearly $600 billion in market capitalization.

The company worries the markets since the beginning of the year, when it first announced that it had lost users on its original social network, Facebook.

Costly investments in view of building the metaverse, touted as the future of the internet, also doesn't reassure doubtful investors. the group's ability to derive significant revenue from this fledgling parallel universe.

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