Meta (Facebook, Instagram) plans to lay off thousands of people starting this week, according to the Wall Street Journal (WSJ), as several tech companies just laid off some of their workforce in response to the economic crisis.
According to the American daily newspaper, this may be the most significant social plan in the industry since the pandemic, which has greatly contributed to the growth of revenues, as well as the staff of these companies.
As of September 30, Meta had approximately 87,000 employees worldwide.
During the recent release of the latest disappointing quarterly results, boss Mark Zuckerberg mentioned that the group’s staff should not increase by the end of 2023, or even cut slightly.
The social plan is due to be announced on Wednesday and the first social plan in the social media giant’s history will affect several thousand employees, according to WSJ sources.
Last Thursday, two Silicon Valley companies, Stripe and Lyft, announced massive layoffs as Amazon froze recruitment for its offices.
Twitter, recently acquired by Elon Musk, just laid off about half of its 7,500 employees.
Ad-based platforms are particularly affected by budget cuts by advertisers struggling with inflation and rising interest rates.
Meta’s net income fell to $4.4 billion in the third quarter (-52% year on year).
“We are facing a volatile macro environment, increased competition, ad targeting issues, and rising costs for our long-term investments, but I have to say that our products seem to be doing better than some comments suggest,” Mark Zuckerberg tried to soften at the end. October during the analysts’ conference.
But the following day, the California group’s Wall Street title fell 24.56%.
In a year, Meta lost nearly $600 billion in market capitalization.
The company has been troubling markets since the start of the year, when it first announced the loss of users on its original social network, Facebook.
Expensive investments in the creation of a metaverse presented as the future of the Internet do not reassure investors who doubt the group’s ability to generate significant income from this young parallel universe.