Facebook parent Meta plans large-scale layoffs this week: report

The layoffs could impact ‘many thousands’ of Meta employees and that an announcement was expected as soon as November 9, The Wall Street Journal reported

November 07, 2022 08:40 am | Updated 12:21 pm IST - San Francisco

Meta in the third quarter saw its profits fall to $4.4 billion, a 52% decrease year-over-year.

Meta in the third quarter saw its profits fall to $4.4 billion, a 52% decrease year-over-year. | Photo Credit: Reuters

Facebook-parent Meta will become the latest tech firm to scale back its workforce, with plans to layoff thousands of employees this week, U.S. media reported on November 6.

The Wall Street Journal, citing people familiar with the matter, reported that the layoffs could impact "many thousands" of Meta employees and that an announcement was expected as soon as November 9.

As of September 30, Meta had about 87,000 employees worldwide across its different platforms, which include social media sites Facebook and Instagram as well as messaging platform Whatsapp.

In his announcement of Meta's disappointing third quarter results, CEO Mark Zuckerberg said the firm's staff would not increase by the end of 2023, and might decrease slightly.

The latest plans from Meta follow recent announcements by other tech firms to freeze hiring or cut their workforce as the industry fights economic headwinds.

Also read: ‘No choice’, says Musk on worldwide Twitter layoffs

Last Thursday, Silicon Valley firms Stripe and Lyft announced large-scale layoffs while Amazon said it would freeze hiring in its corporate offices.

Twitter, freshly acquired by Elon Musk, abruptly fired about half of its 7,500 employees last week.

Ad-supported platforms such as Facebook and Alphabet's Google are suffering from advertisers' budget cuts as they struggle with inflation and rising interest rates.

Meta in the third quarter saw its profits fall to $4.4 billion, a 52% decrease year-over-year.

Meta's stock price took a major hit on the disappointing results, falling 25% in one day. The company's market value over the past year is down to $600 billion.

In addition to its ad-supported business woes, investors have been worried about Mr. Zuckerberg's decision to devote major funds into developing the metaverse.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.