USA: Facebook's parent company Meta Platforms Inc plans to introduce widespread job cuts on Wednesday as part of a cost-cutting strategy on the social media giant in the wake of disappointing earnings and declining revenue, according to people familiar with the situation. Is.
According to People, who declined to be named to discuss personal information, employees affected will be notified starting Wednesday morning, and Chief Executive Officer Mark Zuckerberg spoke to executives on Tuesday to prepare them for cuts. To be. According to the Wall Street Journal, during the executive call, Zuckerberg took responsibility for the company's "missteps."
A request for comment from a Meta spokesperson was not immediately considered
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In late September, Zuckerberg informed employees that Meta planned to reduce spending and reorganize the teams. The hiring freeze was implemented by Menlo Park, a California-based company that also owns Instagram and WhatsApp. According to the CEO, Meta expects the workforce to be less in 2023 than this year.
According to Insider, the company, which employed more than 87,000 people as of September 30, is expected to lose about 10% of its workforce.
The cuts, which are part of the first significant budget cut since Facebook's founding in 2004, are due to a sharp drop in digital advertising revenue, an unstable economy on the verge of recession, and Zuckerberg's significant investment in the metaverse. A speculative attempt at virtual reality.
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In a September Q&A session with employees, Zuckerberg acknowledged that "it's clearly a different way than we're used to operating." For the first 18 years of business, we expanded exponentially essentially every year. Recently, however, our revenue has been flat or slightly lower for the first time ever. As a result, we must adapt.
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The layoffs at Meta came after Twitter Inc last week cut its workforce by nearly 50% after selling itself to Elon Musk. Those layoffs were chaotic, and many workers found they were no longer employed when their access to Slack or email was suddenly cut. Musk claimed that action was needed to stop the loss of the social network. Later, he asked some of the dismissed employees to come back.