Blaming it on increased competition and looming recession, Meta is set to fire 11,000 employees, making it one of the largest cuts in the tech space this year.
According to Meta’s CEO Mark Zuckerberg, the Layoff will impact many aspects of the company, particularly the recruitment team, as they plan on hiring fewer people next year. He added that the hiring freeze, first announced in September, would now be extended till the first quarter of 2023 with few exceptions.
In October, the tech giant posted its second-quarter revenue decline, stating that its profit was half of the previous year. Once valued at about $1 trillion in 2021, Meta’s market value has since dropped to about $250 billion.
As of September 30, Meta had roughly 87,000 employees worldwide across its social media platforms, including Facebook, Instagram, and messaging platform Whatsapp. Surprisingly, Meta’s shares rose 5% on Wednesday following the Layoff announcement.
In addition to the layoffs, Meta’s CEO said the company is expected to “roll out more cost-cutting changes” in the coming months, like “desk sharing for people who already spend most of their time outside the office.”
However, Zuckerberg apologized and took responsibility for the decisions that led the company to where it is now, “I know this is tough for everyone, and I’m especially sorry to those impacted.”
Sadly, Meta is not the only tech company facing challenges from the market downturn. Last Thursday, Lyft and Stripe announced large-scale layoffs, while Amazon announced it would freeze hiring in its corporate offices. Also, Twitter unexpectedly fired about half of its 7,500 employees last week.
The tech sector has been facing a significant decline as rising interest rates, effects of the war, and inflation have led to a shift in spending for an industry that grew more prevalent during the pandemic when consumers shifted more of their lives online. Do you still think the tech space offers job security?
Photo by Muhammad Asyfaul