Facebook layoffs 2022 will start this week. Facebook’s parent company Meta is preparing to notify staff members of significant layoffs. Mass Meta layoffs are anticipated to affect thousands of employees. This year, the social media giant has seen a more than 70% decline in the price of its shares.
After Twitter, Lyft, Microsoft, and Stripe, tech layoffs continue with Meta. The changes, which will be disclosed on Wednesday, are anticipated to impact thousands of Meta’s 87,000 employees worldwide, according to the Wall Street Journal.
Facebook layoffs 2022: Meta layoffs explained
This week, massive Facebook layoffs will start at Meta, the company that owns Facebook and Instagram. Last month, Meta was valued at $270 billion, down from roughly $1 trillion a year earlier. The company representatives have already instructed staff to stop booking unnecessary trips starting this week.
The upcoming Meta layoffs would be the organization’s first notable headcount cutbacks in its 18-year history. The number of Meta employees anticipated to lose their jobs may be the highest to date at a significant technology corporation in a year that has seen a retrenchment in the tech sector, even though it is smaller on a percentage basis than the cuts at Twitter Inc. this past week, which affected about half of that company’s staff.
Following are some important Q3 2022 business indicators for Meta Platforms that cause Facebook layoffs / Meta layoffs:
- Revenues fell by 4%, to $27.71 billion;
- Costs and expenses rose 19%;
- Operating income fell by 46% to $5.66 billion
Why is Meta laying off employees?
CEO Mark Zuckerberg has been under pressure from investors to reduce the firm’s investments in the metaverse. Investors are hesitant to make significant investments in disappointing metaverse offers that could take years to become lucrative, as evidenced by the company’s share price decline of more than 70% this year.
According to Zuckerberg, the metaverse is the company’s future and will take more than $10 billion in investments annually. The metaverse initiative has cost the corporation $15 billion since the start of last year. In the most recent quarter, Meta’s free cash flow decreased by 98% due to its fast-increasing expenses.
Reality Labs, the corporation’s metaverse branch, reportedly lost $3.7 billion over the last three months. The company predicted that in 2023, these losses would “increase dramatically year over year.”
“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.”Meta chief executive, Mark Zuckerberg
In a recent open letter to Zuckerberg, Meta’s stakeholder Altimeter Capital Management stated that the company needed to streamline by reducing capital expenditure and employee salaries. As it increased spending and shifted to the metaverse, it claimed that Meta had lost investors’ trust. Also, RBC Capital Markets analysts stated in a note last month that “Investors continue not to be receptive to Management’s road map & justification for this strategy.”
However, Zuckerberg claimed he was confident the company’s “experimental bets” would be profitable. These would ultimately turn out to be quite significant investments for the future of our company, he said.
“This is some of the most historic work we’re doing. People are going to look back on [this] decades from now and talk about the importance of the work that was done here.”Meta chief executive, Mark Zuckerberg
As the ad industry becomes more competitive, Meta has also stated that it anticipates losing $10 billion in ad income in 2022 as a result of Apple privacy rules that allow customers to refuse to let the business to track them across apps.
Meta layoffs might be the biggest round in recent job layoffs in technology following the sector’s explosive development during the pandemic.
Facebook number of employees: How many employees are at Meta?
Meta employs approximately 87,000 people altogether.
Is laid off better than fired?
Being laid off means you’ve lost your employment due to adjustments the business has made. The distinction between being fired and being laid off is that when you are fired, the employer believes that your conduct led to the termination. You didn’t necessarily do anything wrong if you were fired.
When layoffs happen, who goes first?
- In terms of layoffs, “Last-In, First-Out” applies.
- Fresher, more expensive employees are routinely let go by employers.
- In layoffs, millennials are overrepresented.
Tech layoffs continue with Meta
Not just Meta, either! There are numerous tech industry layoffs taking place right now. like as:
- Twitter layoffs
- Stripe layoffs
- Lyft layoffs
- Microsoft layoffs
As more people shifted their daily lives online during the epidemic, it appeared that the IT industry was growing. However, many internet companies reported slower growth in the third quarter due to consumers and marketers rethinking their spending. Many people in the tech sector are reassessing their investments and workforce needs. Consider for a moment what transpired with the tech layoffs.
Are tech layoffs will continue?
Over the past ten years, tech companies have experienced rapid expansion and exorbitant spending. However, given the impending global recession, which might be significantly longer and harsher than many think, Silicon Valley companies that announced large layoffs this week could be a leading indicator for the whole economy.
Tech companies may need to slow down their recent expansion and spending boom in favor of cost-cutting measures when possible due to the changing economic climate.