Meta is to lay off thousands of employees beginning this week, according to a report2 min read
According to a new Wall Street Journal article, Meta, the parent corporation that owns Facebook, WhatsApp, and Instagram, may begin major layoffs as soon as this week. While it’s unclear how many of Meta’s around 87,000 employees may lose their employment, the new report says it’s in the “thousands.”
Meta has a massive global reach, with over 2.7 billion Facebook users and 2 billion WhatsApp users. According to the Wall Street Journal, the corporation has been on a hiring binge over the previous three years, with over 37,000 new jobs since the beginning of 2020.
The layoffs would be the first in the company’s history, as it just relaunched as Meta in an effort to focus on CEO Mark Zuckerberg’s grand vision for the metaverse. However, that ambition has not been properly achieved, according to stories from behind the scenes, where Meta’s product developers refuse to even use the metaverse. According to the Wall Street Journal, most visitors to Horizon Worlds do not return.
According to September reports, Meta expected to cut spending by around 10%, although it’s unclear how much of that would come in the form of layoffs. When it was still known as Facebook, Meta had a market cap of almost $1 trillion in September 2021. The company’s current market capitalization is under $240 billion.
In recent weeks, the US tech sector has experienced significant layoffs, with Stripe laying off 14% of its 8,100 employees and Twitter terminating around 50% of its employees when Elon Musk took over. In recent months, Netflix, Spotify, and Shopify have all experienced significant personnel reductions.
Despite low unemployment, the United States, like the rest of the world, has been battling with high inflation, causing businesses to fret about the prospect of a recession. The Federal Reserve has been boosting interest rates in an attempt to increase unemployment in the hope of slowing inflation.
Meta did not respond to an early Monday comment request. If we receive a response, Gizmodo will update this article.
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