Meta Platforms plans to begin large group layoffs this week, The Wall Street Journal has learned from sources close to the case. This will be the first time in the company’s 18-year history. thousands of people will be lost. Employees have been asked to cancel non-essential business trips.
Meta, or Facebook, is planning layoffs due to poor financial results
There has been talk of layoffs for several months now, as the entire tech industry is having financial problems after the pandemic. At the end of October, it showed the results for the third financial quarter of 2022. To say they are terrible is to say nothing. Net profit amounted to only USD 4.4 billion and turned out to be as much as 52 percent lower compared to the same period last year.
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In the last quarter, the revenue of Reality Labs, which is responsible for the project, decreased from USD 558 million to USD 285 million, and the operating loss increased from USD 2.64 billion to as much as USD 3.67 billion, which is a record high. In total, only this year, projects implemented by Reality Labs “burnt out” as much as USD 9.4 billion, and it is not expected that this branch will suddenly start generating a profit in the coming quarters. Learn more about it in the video below:
Already during the presentation of the results, the founder said that some teams will grow, but others will decrease. Group redundancies will take place after several months of surgical redundancies in individual departments. “In fact, there is a group of people in the company who should not be here,” he said in June at a meeting with employees.
At the end of September, Meta reported that it employed 87,000 people. people. 27 thousand of them were employed in 2020 and 2021, and another 15,000. in the first nine months of this year. Zuckerberg, however, overshot the Metaverse project. The company’s shares have fallen by 70 percent this year alone, which may explain group redundancies after a three-year period of rapid employment growth in the company.
Twitter is also looking for savings
It’s part of looking for savings on Twitter. Elon Musk reported that there was no other choice because the company is losing $4 million a day.
3.7 thousand people lost their jobs. people, out of 7.5 thousand who were employed at Twitter.
Source: Gazeta
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