Meta plans a massive layoff plan

Meta (Facebook, Instagram) plans to lay off thousands of people starting this week, according to the Wall Street Journal (WSJ), as several tech companies have just laid off some of their workforce in response to the economic crisis.

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This could be the most substantial social plan in the sector, according to the American newspaper, after the pandemic that has largely benefited the growth of revenues, but also of the staff of these companies.

Meta had approximately 87,000 employees worldwide as of September 30th.

During the recent release of the latest disappointing quarterly results, chief Mark Zuckerberg said that the group’s headcount is not expected to increase by the end of 2023, or even decrease slightly.

According to WSJ sources, the social plan is expected to be announced on Wednesday and several thousand employees will be affected by this first social plan in the history of the social networking giant.

On Thursday, two Silicon Valley companies, Stripe and Lyft, announced sweeping layoffs as Amazon froze hiring at its offices.

Twitter, recently acquired by Elon Musk, has just laid off about half of its 7,500 employees.

Platforms whose business model is based on advertising are particularly affected by budget cuts by advertisers struggling with inflation and rising interest rates.

Meta saw its net profit reach $ 4.4 billion in the third quarter (-52% year-over-year).

“We are facing an unstable macroeconomic environment, increased competition, ad targeting issues and rising costs for our long-term investments, but I have to say that our products seem to do better than some comments suggest,” tried to moderate Mark Zuckerberg. at the end of October, during the conference with analysts.

But the Californian group’s stock fell 24.56% the next day on Wall Street.

In one year, Meta lost nearly $ 600 billion in market capitalization.

The company has been worrying the markets since the beginning of the year, when it first announced that it had lost users on its original social network, Facebook.

The costly investments to build the metaverse, presented as the future of the Internet, do not reassure investors who doubt the group’s ability to derive significant income from this nascent parallel universe.

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