Many companies including Microsoft, Snap, Twitter have initiated the process of laying off employees due to the global economic recession. The company ‘Meta’, which manages popular social media platforms such as Facebook, Instagram and messaging app WhatsApp, is preparing to lay off employees on a large scale. After Twitter, Facebook parent company Meta lay off employees.
The list of employees to be removed has already been prepared, and the dismissal process will begin from Wednesday (9), the ‘Wall Street Journal’ reported. Recently, Twitter also laid off employees in a big way. In the wake of this incident, another company is planning to lay off employees, raising fears about the effects of the recession.
Meanwhile, the ‘Meta’ company has denied the ‘Wall Street Journal’ report.Last month (October), Meta had highlighted the risk of a slowdown in the company’s quarterly revenue. After this statement came out, the shares of Meta Company, which had seen a continuous decline, had lost the value of 67 billion dollars.
Meta’s capital loss this year is around 50,000 crores.The slowdown in global economic growth and fears of a recession in the near future have had a direct impact on Meta’s profits. In addition to this, the strong competition that TikTok is facing, the fact that Apple has changed its rules in terms of privacy and privacy, and the calculation that it will cost more for Metaverse and the fear that there may be any changes in the rules.
Mark Zuckerberg, CEO of Meta Company, said that Metaverse’s investments will take about 10 years to pay off. Zuckerberg has since halted hiring, dropped several projects, and announced several cost-cutting measures. “In 2023, we will focus our investments on a small number of areas with high growth potential. Thus some teams grow meaningfully. But most of the other teams do not see progress.
Not only that, the team members will also decrease. By the end of 2023, our team will be more or less the same number or may be a little less,’ said Mark Zuckerberg last October. Mark Zuckerberg said that he will reduce the recruitment rate of engineers by 30%. Zuckerberg warned employees to make necessary preparations to face the economic downturn.
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Altimeter Capital Management, Meta’s investor company, wrote an open letter to Mark Zuckerberg, urging the company to reduce the number of employees and focus on reducing costs. The letter reiterated that investor confidence in Metaverse is waning.
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