The impact of the economic shutdown due to COVID-19, unrest in Ukraine and concerns about climate change have had a significant impact on the sluggish state of the global economy. This unfortunate situation has a negative impact on job creation worldwide. All this has led to the fact that even a small report on layoffs in large companies causes a negative stir in the business world.
Sluggish growth has seen Google and Facebook parent Meta, the two tech giants, lay off employees to cut costs, according to a Wall Street Journal (WSJ) report.
The media added that Meta hopes to cut its costs by at least 10% in the coming months by reorganizing departments and allowing employees to apply for other positions within the company.
The Journal website added that all of these measures will lead to a reduction in employment. Cost reductions are expected to begin in the coming months.
In July, Meta Platforms Inc. released a grim outlook after reporting its first quarterly decline in revenue as recession fears and competitive pressures weighed on digital ad sales.
The company said it expects third-quarter revenue to fall to $26 billion to $28.5 billion, the second straight year-over-year decline. Analysts had expected $30.52 billion.
The WSJ added that Google has also asked some employees to look for internal positions if they want to stay with the company. Last week, Google told about half of the more than 100 employees at the Area 120 startup incubator that they should find a new internal position within 90 days.
The cost-cutting moves by Google and Meta show how these ad-based tech giants are bracing for a slowdown in the economy.
Both companies have previously hinted that they are considering cost-cutting measures.
Sundar Pichai, CEO of Alphabet, reportedly told Google employees in July that the company would be cutting hiring until the end of the year.