Meta (parent company of Facebook) is supposedly planning to start immense unemployment this week. The supposed move could badly affect thousands of Facebook employees. At the weekend, US media reported that the social giant will start job cuts on Wednesday. CEO Mark Zuckerberg also confirmed that its staffing could fall this weekend.
Zuckerberg said the company has focused on its investments in a few top-level earning areas in 2023. Meta currently has at least 87,000 employees across its different platforms around the world. Keep in mind that Facebook, Instagram, and WhatsApp are the most popular social platforms. The job cuts planning follows critical issues across the tech sector amid slow global economic growth.
Facebook Could become a Smaller Organization in 2023
Meta CEO added that he is expecting some teams would remain flat or decrease in the next year. The end of 2023 is expected to experience the same size or a significantly smaller organization than now. The advertiser’s budget cuts issue affected Ad-supporting platforms such as Facebook and Google. However, inflation and increasing interest rates are considered major issues.
Last week, Silicon Valley firms Lyft and Stripe also announced massive termination. Amazon also confirmed the supposed hiring freeze in its corporate offices. Twitter terminated around half of its 7,500 employees last week since Elon Musk acquired the social platform. However, the global economic situation isn’t the only issue for Meta.
Metaverse Investments, Implementations, & Expenditures
There is strong competition from TikTok, Apple’s privacy changes, regulation threats, and spending concerns related to the metaverse. Zuckerberg is expecting that metaverse investment would take at least a decade to produce positive results. The social media platform stopped plans to employ 30% of engineers. He also warned employees to boom for an economic slump.
Altimeter Capital Management is one of Meta’s shareholders. The firm forwarded a letter to Zuckerberg and asked to cut jobs and capital expenses to streamline the social platform. Meanwhile, Meta has lost investor confidence after increasing expenses and focusing on the metaverse. The market value of the company significantly dropped to $600 billion last year.
The Employee Termination Execution Could Happen on Wednesday
Moreover, an authentic news outlet theguardian.com also reported supposed plans from Meta. The company is reportedly planning to eliminate thousands of employees. Meta lost around $80 billion of its market value last month following the global economic plunge. The Wall Street Journal reported that the company will execute its employee’s termination plan on Wednesday.
The expected move from Meta would critically affect thousands of employees among its 87,000 employees around the world. However, Meta didn’t confirm the report but a spokesperson of the company referred to the comments of Zuckerberg. He said the company has now focused its investments on a smaller number of top-priority development sectors.
Meta has Focused on Strengthening Artificial Intelligence
However, the market value of Meta was recorded at $1 trillion in 2021 but has now dropped to $270 billion. Zuckerberg said the company is focusing on artificial intelligence strengthening recommendations for Instagram Reels, advertising, and metaverse discoveries. Meta reported that its “Reality Labs” of metaverse division drained around $3.7 billion in the last 3 months.
Meanwhile, Zuckerberg was convinced by the experimental risks the company is continuously experiencing. He said these are very important investments for our business and its future growth. The company is currently doing the most historic work. Zuckerberg stressed that massive investment in the metaverse would effectively provide a plethora of benefits to the next generations.
