Meta, the parent company of Facebook, plans to lay off thousands of employees starting this week

Meta, the parent company of Facebook, plans to lay off thousands of employees starting this week, US media reported on Sunday, as several technology companies have laid off workers in response to the economic crisis.

 

The Wall Street Journal, citing people familiar with the matter, reported that the layoffs could affect "many thousands" of Meta employees and that the staff cut would be announced on Wednesday.

 

As of September 30, Meta had some 87,000 employees worldwide on its various platforms, which include the social networking sites Facebook and Instagram, as well as the WhatsApp messaging platform.

 

Following the recent release of disappointing quarterly results, Meta CEO Mark Zuckerberg said the company’s headcount would not increase by the end of 2023 and may even decrease slightly.

 

Last Thursday, Silicon Valley companies Stripe and Lyft announced large-scale layoffs, while Amazon said it would freeze hiring at its corporate offices.

 

Twitter, recently bought by Elon Musk, has just laid off almost half of its 7,500 employees.

 

These platforms whose business model is based on advertising suffer particularly from budget cuts by advertisers, affected by inflation and rising interest rates.

 

Meta’s net profit fell 4.4 billion dollars in the third quarter (-52% in one year).

 

"We are facing an unstable macroeconomic environment, increased competition, ad targeting issues and rising costs from our long-term investments, but I must say that our products are better than some comments suggest."Zuckerberg said at the end of October trying to give a reassuring message.

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However, the Californian group’s share fell 24.56% the next day on Wall Street.

 

In one year, Meta lost nearly $600 billion in market capitalization.

 

The firm has worried the markets since the beginning of the year, when for the first time it announced losing users in its original social network, Facebook.

 

In addition to his publicity problems, investors have been concerned about Zuckerberg’s decision to devote large funds to the development of the metaverse, a fledgling parallel universe billed as the future of the internet.

 

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