Meta reduced its profits by 52% during the third quarter of 2022; the second largest drop in its history. It currently has 87 thousand employees, how many will be fired and from which sections?
According to sources quoted this Sunday by The Wall Street JournalFacebook’s parent company, Meta Platforms, Inc, will announce a plan for mass layoffs this week. The measure would be confirmed as of Wednesday, affecting thousands of employees; without being certain of the amount and the departments with the most cuts.
This will come days after the biggest cut in human talent that has hit Twitter, with some 3,700 workers laid off, or half of its total workforce; behind the acquisition of the Elon Musk company.
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Meta’s cost-cutting strategy could outperform Twitter’s in number of layoffs; the first major downsizing by CEO Mark Zuckerberg in the 18 years since Meta, formerly Facebook, was created.
And it is that the results of the giant would not give for less, with alarms turned on since the end of October of this year. The profit of the group contracted 52% in the third quarter of 2022, reaching 4,395 million dollars; the second quarterly drop in revenue in its history.
Invoicing did rise but less than expected, so much so that the accounts caused a stock market crash that caused the loss of a quarter of its value on the Stock Market, falling by 24.56% and losing more than 89 thousand in a single day. millions of dollars.
The cases of Meta and Twitter are different, but in the long run they are symptoms of the crisis in the technology sector and the deterioration of the world economy. The traditional activities of Meta, which operates Facebook, Instagram and WhatsApp, among other applications; they have stagnated. Added to this is the strong competition from other social networks that are on the rise like TikTok and the blocking of advertising tracking by Apple.
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At the end of September of this year, Meta had 87,314 employees, 28% more than in 2021. The Wall Street Journal does not indicate the percentage of employees to be laid off, but it does speak of “thousands of layoffs.” The teams or product areas most affected by the decision are also not known.
Mark Zuckerberg, founder of Facebook, had already asked investors for patience, arguing that Meta’s efforts and its development of the metaverse would take about a decade to fully take off. Weeks ago he announced, coinciding with the presentation of results, that in 2023 the company will be very selective with its objectives.
“We are going to focus our investments on a small number of high-priority growth areas. That means some work teams will grow significantly, but most will remain flat or shrink over the next year. Collectively, we expect to end 2023 with the same size, or even a slightly smaller organization than today,” he explained.
According to Zuckerberg, his company faces short-term challenges and the foundations are in place to return to higher revenue growth. His focus for 2023 is prioritization and efficiency to navigate the current environment and emerge as an “even stronger” company.
Image: ENTER.CO file