This news comes to us from the Wall Street Journal (via Engadget). 2022 is no stranger to massive job cuts. So far, we’ve seen companies like Niantic, Twitter, Verizon, T-Mobile, and Netflix lay off a lot of their staff. Some of this can be from the economic downturn and some from other issues.
The Meta massive job cut stems from the company’s misfortunes
As stated before, Meta’s 2022 New Year’s resolutions have not been coming true apparently. The company has been losing a metric ton of money. And, that means a lot for one of the world’s largest companies. Meta’s stock prices plummeted more than 70% this year, it’s spending a lot of money on its Metaverse initiative, Apple no longer lets Facebook collect data from iPhone users, and TikTok is stealing a lot of Instagram’s thunder. These are just some of the factors contributing to this massive layoff. Because of this, it seems that the company could not hold out any longer. It needs to bring the ax down on a bunch of unfortunate employees. At this point, we don’t know how many people will be sent home, but the source says that “many thousands” of jobs will be cut. Meta currently employs over 87,000 employees. That’s a lot of people compared to most other companies. Still, a layoff on this scale will put a stopper on several of Meta’s projects. A Meta spokesperson said that “we’re going to focus our investments on a small number of high-priority growth areas.” We can guess that the company is going to prioritize the areas that will make it the most money and keep investors the happiest. So, other more ambitious projects will either have fewer staff members or be discontinued until further notice. Right now, Meta is not in a good place, however, it plans on turning things around. In 2023, we may see some changes to the company as it steers to ship in a different direction.
