META IS CONSIDERING LAYOFFS OF SEVERAL EMPLOYEES. REPORTS
SAN-FRANCISCO: Meta, the parent company of Facebook, is planning to cut thousands of jobs this week, according to US media reports. Meta will be the latest internet company to reduce its personnel.
The Wall Street Journal said that an announcement was anticipated as soon as Wednesday and that the layoffs might affect "many thousands" of Meta employees.
On its various platforms, which include the social media sites Facebook and Instagram as well as the messaging service Whatsapp, Meta has roughly 87,000 employees as of September 30.
The CEO of Meta, Mark Zuckerberg, stated in his report of the company's poor third-quarter results that the number of employees will not expand by the end of 2023 and might perhaps somewhat drop.
The most recent intentions from Meta come after recent declarations by other tech companies to halt hiring or reduce their personnel as the sector battles economic headwinds.
On Thursday, Silicon Valley companies Stripe and Lyft announced significant layoffs, and Amazon imposed a recruiting freeze at its corporate headquarters.
About half of Twitter's 7,500 employees were unexpectedly sacked last week after Elon Musk recently acquired the company.
Platforms that rely on advertising, like Facebook and Alphabet's Google, are experiencing a decrease in advertising spending as a result of inflation and rising interest rates.
In the third quarter, Meta's profits dropped to $4.4 billion, a 52% year-over-year decline.
The poor results significantly lowered Meta's stock price, which dropped 25% in one day.
Over the past year, the company's market value has decreased to $600 billion.
Investors have been concerned about Zuckerberg's choice to commit large amounts to establishing the metaverse in addition to its ad-supported business difficulties.
