The social media and technology company, Meta is planning to lay off thousands of employees this week. However, the exact number of people to be fired is still unclear.
Facebook-parent, Meta will become the latest tech firm to scale back its workforce. Most recently, Twitter laid off thousands of its employees across the globe. The company also laid off over 80 percent of its employees in India.
“Our community continues to grow and I’m pleased with the strong engagement we’re seeing driven by progress on our discovery engine and products like Reels,” said Mark Zuckerberg, Meta founder, and CEO.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company”, Mark Zuckerberg added.
“In 2023, we’re going to focus our investments on a small number of high-priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year”, Mark Zuckerberg added.
Mark Zuckerberg further said, “In aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today.”
The CEO of Meta said post the announcement of Meta’s disappointing third-quarter results that the organization’s staff would not increase by the end of 2023. Additionally, there will be a slight decrease in the workforce.
The company employs nearly 87,314 employees worldwide across its different platforms. Meta currently owns some of the biggest platforms social media sites Facebook and Instagram as well as messaging platform Whatsapp.
On the other hand, IT majors, like Intel Corporation, Snap, Microsoft, Twitter, TikTok, and Google have either laid off employees or frozen new hiring.
IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe, the biggest markets for the sector.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.