Facebook parent company Meta prepares for massive job cuts this week

Meta Platforms Inc (META.O) is set to begin major layoffs this week that will affect thousands of employees, The Wall Street Journal reported Sunday, citing a person familiar with the matter. It will be announced as early as Wednesday.

Mehta declined to comment on the WSJ report.

Facebook’s parent company, Meta, predicted in October that a weak holiday season would lead to significant cost increases next year, reducing Meta’s stock market value by about $67 billion.

Meta sees a disappointing outlook as it battles a slowing global economy, competition from TikTok, privacy changes by Apple (AAPL.O), concerns over huge spending on the Metaverse, and ever-present regulatory threats. It is

CEO Mark Zuckerberg said he expects the investment in the Metaverse to take about 10 years to come to fruition. Meanwhile, he had to freeze hiring, close projects, and reorganize his team to cut costs.

“In 2023, we will focus our investment on a small number of high-priority growth areas, meaning that some teams will grow meaningfully, while most others will remain flat or shrink next year. Overall, by the end of 2023, we expect to be about the same size or slightly smaller organization than we are today,” Zuckerberg said in his final earnings call in late October.

Social media companies cut plans to hire engineers by at least 30% in June, and Zuckerberg warned employees to prepare for a recession.

Meta shareholder Altimeter Capital Management has said in an open letter to Mark Zuckerberg that the company needs to cut and streamline its hiring and capital spending, prompting Meta to increase spending and pivot to the Metaverse. He added that it has lost investor confidence.

Several tech companies, including Microsoft (MSFT.O), Twitter (MSFT.O) and Snap (SNAP.N), have closed in recent months as rising interest rates, rising inflation and the energy crisis slow global economic growth. We are reducing staff and shrinking employment. in Europe. Facebook parent company Meta prepares for massive job cuts this week

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