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Meta lays off 13% of its workforce: its most difficult moment in almost twenty years of history

The worst news has been fulfilled. The parent company of Facebook, Goalhas confirmed that the massive dismissal of its employees will affect 11,000 people. Soon all workers will receive an email informing them whether or not they continue with the company.

If the data for the current year of the company is analyzed, it is detected that it has lost a value of around 71%falling its shares on the stock market in a twenty%. Meta currently has 87,000 employees around the world on its different platforms (Facebook, Instagram and Whatsapp).

mark zuckerbergCEO of Meta and creator of Facebook, has assured that the dismissed workers will be able to access your email to say goodbye, but not to the Meta platform, due to the amount of sensitive information it contains. “I know this is hard for everyone and I am especially sorry for those affected.he added.

Its about biggest downsizing experienced by the company in its almost two decades of life and more affecting all kinds of departments and regions. However, some areas such as recruiting and business have been affected more than others. It is also the case of Reality Labssection specialized in metaverse projects for Meta, that is, in the future of the company.

Without going any further, at the end of September of this year there were 87,314 workersthat is, the largest number that the company had had on the payroll in its entire history.

In the third quarter of 2022, the Meta data reflects the overall slowdown that exists in all economic sectors, including technology. However, for investors it has been a jug of cold water, since Meta shares were higher after the announcement with a raise of a 6.36% advanced the day.

The causes of dismissals, according to Meta

The pandemic. With the beginning of the confinement, social networks and electronic commerce occupied a priority place, but as the weeks progressed, this position was reduced. The economic crisis and increased competition made them fade away.

Advertising revenue. The post-pandemic crisis led companies to reduce their investments in advertising. In addition the technological changes in iOS (Apple’s mobile operating system) meant that developers had to ask for permission to obtain browsing information from users. Now Meta couldn’t provide advertisers with information about its iPhone users. Also Google at the beginning of the year announced something similar in Android.

The other social networks. Meta has seen how other social networks, such as TikTokhave managed to attract young users in front of theirs, despite the relevance of Instagram.

His bet on the metaverse. It has not given the expected benefits. Being a medium-long-term strategy, it has not been able to generate immediate income. Added to this is Zuckerberg’s criticized presentation of his avatar that moved and raised its legs, stating that it was an exclusive animation for the presentation that was not yet possible on Facebook.

Own Zuckerberg make sure you want change the method of operating the company to cut costs and reorganize teams, reducing real estate. In this way, those employees who spend more time outside the offices will share workspace instead of having their own workstations.

In 2023 they plan to focus their investments on high priority growth areas and that their teams remain stable or slightly reduce in size, depending on the evolution. Hiring will be frozen at least during the first quarter of next year.

This case is reminiscent of Twitteralthough now the staff reduction applied by Meta triples that of the little bird’s social network.

After the purchase of Elon Musk, Twitter has managed to get out of the hole in which it was. Its new owner sold 19.5 million Tesla shares in exchange of $4 billion to close the payment 44 billion that I had to do on Twitter.

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