Meta may soon initiate mass layoffs to stabilise its earnings.
According to the WSJ, the layoffs can be initiated as early as the next week of November 2022.
According to the Wall Street Journal, Mark Zuckerberg’s company, Meta, may soon initiate mass layoffs this week. The report further explains how thousands of Meta employees may soon be sacked, as early as the second week of November.
Meta May Reportedly Lay Off Thousands Of Its Employees
Meta, the parent company of the social media website Facebook, is reportedly looking forward to laying off thousands of its employees.
Citing people familiar with the matter, the WSJ later adds how Meta’s intended layoff will be dubbed one of the largest layoffs to have taken place in the company’s history. The report later stressed Zuckerberg’s recent statement that shared how the company is now looking forward to “focusing its investments on a small number of high-priority growth areas.”
Meta’s recent decision to lay off half of its workforce could have been influenced by its recently announced Q3 report. The report has been dubbed distressing by several crypto analysts and has disclosed billions of dollars’ worth of losses that Meta has encountered as of late.
The latest Q3 report from Meta has revealed distressing metrics for the company as a whole. The report revealed how Meta’s metaversal division has lost $3.9 billion to date and has failed to capitalise on metaversal trends, which ultimately resulted in the company encountering a spree of notable losses.
“Meta reported revenue of $27.71 billion in Q3 compared to analysts’ expectations of $27.38 billion. The revenue was down by 4% year-on-year. Revenue in the Reality Labs unit, which houses the company’s virtual reality headsets and its futuristic metaverse business, fell by almost half from a year earlier to $285 million. “Slowdown in online ad spending, challenges from Apple’s iOS privacy update, and increased competition from TikTok impacted its revenue and earnings.” Data from IndMoney will be added later.
Apart from Meta, microblogging website Twitter has recently initiated mass layoffs to stabilise its growing expenses. Additionally, several crypto companies, including Coinbase, Gemini, Crypto.com, Celsius, and BlockFi, have also laid off staff in their bid to navigate the harsh crypto winter.