The news comes to us thanks to Bloomberg who mentioned how the social media firm is unleashing a series of warnings to all workers about a downsize and a complete reorganization. They will stop hiring as confirmed by the company’s CEO via an internal call.
Meta which is the owner of Facebook, WhatsApp, and Instagram appears to be on a mission to cut budgets seen around most teams. And it’s interesting how this particular announcement arises just 7 days after the WSJ said Facebook’s employees were told to find other roles in the corporation as it undergoes the process of downsizing.
As mentioned in this particular report, workers seen on this 30-day list were left with no choice but to search for a new role or else face the drawback of being terminated.
This is the firm’s first huge cut in budget ever since Facebook was founded. And hence it appears to be a huge end to the era observed during the peak growth of social media.
For a while now, Mark Zuckerberg has been pointing fingers at how the current economic uncertainty issue has been the major driving factor for such decisions. They say the cuts are not a personal choice but one made in line with the current situation.
By now, they hoped the market would be stable and while many experts feel it has become more stable now, Meta is being very cautious on what to do next. They’re on the rise to making conservative decisions and Zuckerberg reiterated that during his recent question and answer session, as revealed by Bloomberg.
During the early part of this year, Meta elaborated more on its initial decline in revenue from ads. And this was the first time ever it had experienced this after Apple’s famous ad tracking policy came into play.
In this way, iPhone users were given the chance to opt out of having data be tracked through several apps. In addition to that, the firm’s growth has been massively affected by the great competition on display, thanks to apps like TikTok and takeaway screentime once owned by Meta’s apps.
But remember, the news isn’t entirely new. We’ve seen Meta talk about how it’s been busy preparing fur such cuts in jobs for a while now. And the first time we saw it was actually July as the firm started to brace itself for some major cuts. Moreover, seeing it miss out on its earnings for the quarter was another major hint of how things weren’t going in its favor. There would also be a slower pace for the company in terms of making investments.
The CEO for Meta also shed light on how teams would be made smaller in response to the fall in revenue targets as it indicated a downturn for the firm. This was outlined as the initial year in the app’s history when it failed to grow.
If this bad news wasn’t enough, there’s talk about how Meta has been facing a lot of downturn like other firms who generate most of their income through advertising and hence need to brace for this economic challenge. This came with a recent fall in the interest rate for the Federal Reserve.
Twitter mentioned how a hiring freeze was also going to take center stage in its own firm in May and that’s when workers were requested to limit spending where feasible. Then came Snapchat which reduced its workforce by a staggering 20% too. Last but not least, Google was also forced to make some amendments keeping in light the current situation.
Its parent firm called Alphabet reduced the hiring rate to nearly half this year.
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