BrandArena: Why Meta Inc. is planning a massive layoff of workers

Tuesday 8 November 2022

Why Meta Inc. is planning a massive layoff of workers

Just a few days after Elon Musk’s announcement of layoff at his recently acquired microblogging platform, Twitter, Mark Zuckerberg-led Meta Platforms is set to lay off 'thousands' of employees this week. 

Reasons for the plan
Meta Platforms is likely to lay off 12,000 employees or 15% of its staff as falling ad spending poses serious problems for the Big Tech firm. 

The Facebook parent’s decision follows similar moves by other tech majors such as Apple, Microsoft, and Google. These firms have frozen hiring or begun handing out pink slips to their staff to rationalise costs and maintain operating margins. 

Just recently, the CEO of Meta had to freeze hiring new members of staff and hinted that the company would likely lay off workers.

Given that the company has to deal with slow global economic development, rivalry from TikTok, privacy changes from Apple Inc., worries about large spending on the metaverse, and the ever-present danger of legislation, its future is quite gloomy.

Mark Zuckerberg has also said that it will take roughly a decade for the company’s efforts in the metaverse to start paying off. Therefore, by “freezing” hiring, cancelling projects, and restructuring his workforce, the CEO’s plan is a move to reduce expenses.

“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. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today” Zuckerberg said on the last earnings call in late October.

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