Meta, the parent company of Facebook, Instagram, and Whatsapp, has announced an additional 10,000 layoffs. Meta has already fired off 11,000 workers in the first round of layoffs, which occurred in November of last year. According to Mark Zuckerberg, these layoffs are a part of a "year of efficiency," and in addition to the 10,000 jobs being slashed, 5,000 additional vacant positions will also be eliminated.
Since their earnings were 4% lower than the previous year, Mark said it was solely the result of the revenue's sharp slowdown. He also cited an increase in interest rates in the United States, global geopolitical risk, and increased regulation as factors slowing meta's growth and revenue. He further stated that layoffs like these could occur in the future.
It's hard to see such a big company making these kinds of cuts. Many people are still struggling to recover financially from the pandemic. If a large company like Meta has to layoff people, smaller companies will likely have to take similar action.
ReplyDeleteThis is crazy. You would've thought they'd stop at their original mass layoffs but I guess you can't ever be surprised with Zuckerberg. It seems like everyday we are seeing mass layoffs in one sector but payroll employment increasing overall. This labor market is tough right now and the pessimist in me is not loving it.
ReplyDeleteAre we aware of the kinds of jobs within Meta that will be affected by these cuts? Meta has done a poor job transitioning from Facebook to Meta, and I'm curious if this is just a continuation of that. There are a lot of big companies who are laying people off at the moment, so that might support Zuckerbergs points about interest rates, global insecurity, and regulations that affect industries as a whole; but other companies have not had layoffs as large as Meta, so I still suspect it has something to do with their decline since becoming Meta
ReplyDeleteWow. Geopolitical risk is an especially shocking reason for laying off so many workers. I'm thinking mainly of TikTok here, which Meta has been lobbying the U.S. government to ban recently. With this in mind, if TikTok is actually banned in the U.S., how do you think this will impact Facebook's unemployment rate, and will Facebook have any more excuses to justify laying off so many workers?
ReplyDeleteI wonder how future interest rate increases may affect Zuckerberg's decision to lay off more people, or if company revenue will be a bigger factor than that.
ReplyDeleteWill be curious to see in the upcoming years if things become so efficient with technology that tons of people just lose their jobs.
ReplyDeleteI wonder if META will see continued issues with revenue in 2023 as many people expect an incoming recession. It is also unlikely that META will see a recovery soon as the Fed continues to make efforts to slow down the economy to combat inflation.
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