Facebook Parent Meta Is Expected to Announce Layoffs for a Large Number of Employees This Week

Facebook [Meta] will begin a round of companywide layoffs as soon as this week, the Wall Street Journal reported.

This news comes as a surprise to many, given that just last month Facebook announced that it would invest $3 billion into bringing internet access to developing countries over the next decade. However, with revenue growth slowing and costs rising, something had to give eventually - and unfortunately for some employees, that something appears to be their job security.

After the Twitter layoffs last week, this could be a disaster in a recent spike of tech job layoffs after rapid growth during the pandemic.

Meta Layoffs This Week Report Major Changes for the Tech Giant

Last month, investors called for Meta to begin large-scale layoffs this week and reduce its metaverse ambitions in an open letter to CEO Mark Zuckerberg. This reflects the growing unhappiness among shareholders. Facebook parent, Meta, says many thousands are likely to be affected by the cuts. This would be the first time in the company's 18-year history that they've had to reduce staff at this rate.

Meta Warning Employees to Brace

This year many tech employees have lost their jobs. Meta, warning employees to brace; are slated to begin large-scale layoffs as soon as Wednesday, Wall Street Journal reported.

Meta's Stock Market Value Falling

This year, Meta's stock value has tanked by half a trillion dollars. While the company tries to blame it on worsening economic trends. Investors are more worried about how recent expenses will affect the profitability of their primary social-media business. The Wall Street Journal reported in September that Meta was planning to cut expenses by at least 10% in the coming months, in part through staff reductions.

Prepping for a Weak Holiday Quarter and Significantly More Costs

Facebook parent, Meta, in October, projected a losing holiday quarter and significantly more costs going into 2023. So far, the Metaverse project has cost just shy of $70 billion of Meta's stock market value, adding to the more than half a trillion dollars in value lost this year says the Hindustan Times. This is truly unbelievable.

Meta Teams Will Grow Meaningfully, or Teams Will Stay Flat or Shrink

Facebook parent, Meta, in October, said, “Our teams will grow meaningfully, but most other teams will stay flat or shrink over the next year". There are probably a bunch of people at the company [Meta] who shouldn’t be here,” Mr. Zuckerberg told employees at a meeting last summer.

Meta Will Cut Unnecessary Projects and Reorganize Teams to Trim Costs

With all these changes, Meta hopes that they can cut unnecessary projects and reorganize teams to trim costs low enough to stay afloat. That way they keep investing heavily in the Metaverse project.

Meta Declined to Comment

Meta declined to comment on Meta CEO Mark Zuckerberg’s recent statement that they would be “focusing investments on a small number of high-priority growth areas". 

Meta Invests in Additional Computing Power and AI

Meta has been spending extra money on artificial intelligence and more powerful computers to further its Metaverse project. Meta has also invested over $15 billion in promoting its virtual-reality platform, Horizon Worlds, but users are generally unimpressed.

Meta Says the Metaverse Is the Future

“I get that a lot of people might disagree with this investment,” Mr. Zuckerberg expressed to analysts last month before reconfirming his commitment to the project.

Conclusion

Facebook parent, Meta is preparing large-scale layoffs. It's no doubt that the company is going through tons of changes lately. Causing investors to lose interest in the Metaverse project. While some investors are unhappy about the direction the company is taking, others remain hopeful for the future of Meta. Only time will tell if these investments will pay off in the long run.

Is your phone not charging as quickly as you'd like? A premium phone deserves a premium charger. With our wall chargers, cables, and portable power banks, you'll find the perfect fast-charging solution for all of your devices, whether they're iPhone or Android. Check out our website today and purchase a KEUTEK charger for your phone!

Thanks for reading! We hope you found this article helpful. If you have any questions or comments, please leave them down below.