Facebook Parent Meta Platforms Inc. Is Cutting Jobs For These Reasons
Meta Platforms Inc. follows Twitter in job cuts. The Facebook parent company initiated work on widespread job cuts on Wednesday. According to insiders, Mark Zuckerberg took the drastic step after disappointing earnings and a sharp drop in revenue.
HIGHLIGHTS
• Meta job announces job cuts for the first time after its inception in 2004
• About 10% of Meta employees are expected to be affected by the job cuts
• Mark Zuckerberg had already updated his team about the job cuts in September
What Are The Reasons Given For Job Cuts By Meta Platforms Inc.?
When Mark Zuckerberg warned employees in late September about his intentions to slash expenses by restructuring teams, the company was already reeling struggling to improve its revenue from digital advertising. The fear of economic recession also forced Mark Zuckerberg to take this drastic step. Insiders also say that Zuckerberg needs more funding for his speculative virtual-reality push called the Metaverse.
How Did The Job Cut Start In Meta Platforms Inc.?
The Menlo Park, California-based company implemented a hiring freeze saying that the CEO Mark Zuckerberg wants a smaller team in 2023. On Tuesday, Zuckerberg told the executives to prepare for job cuts. The Wall Street Journal reported Mark Zuckerberg said that he was accountable for the company’s missteps during the executive call.
What Did Mark Zuckerberg Say To Executives?
He said that the company basically grew quickly every year for the first 18 years, and then more recently their revenue had been flat to slightly down for the first time. So they had to adjust. Meta Platforms Inc. owns Instagram and Whatsapp as well and employs more than 87,000 people as of September.
Recently Twitter announced job cuts of up to 50% after Musk’s takeover. But later the company asked some employees to return. Snap Inc. which owns Snapchat is also cutting jobs. In August, the company said it would eliminate 20% of employees.
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