WSJ: Meta cuts costs and fires employees
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Meta Corporation (recognized as extremist and banned in the Russian Federation) plans to cut costs by 10%, in particular, by laying off employees. Writes about it The Wall Street Journal citing unnamed sources. According to them, while the corporation is reorganizing some of the divisions, their employees are offered to urgently find another job within the company, but in the end, many have to leave it. According to WSJ sources, Meta plans to further reduce employees more actively.
Meta has been going through tough times lately, facing intensifying competition and slowing revenue growth. Company finished second quarter with the first ever decline in revenue. The previous few quarters were also not very successful for her. Meta shares are down 56% year-to-date, far more than the big stocks on average, with the S&P 500 down 20% over the period and the NASDAQ down 26%.
Previously already reportedthat Meta terminated contracts with several dozen contractors selected at random by the choice of the algorithm. A few weeks ago, Meta executives publicly discussed the need for a hiring freeze and a “ruthless prioritization” of the business, but did not speak directly about layoffs. At the end of the second quarter, the company had more than 83.5 thousand employees – 32% more than a year earlier.
Other tech companies are also reporting cost cuts and layoffs. Alphabet Corporation closed several projects, offering their employees to find other work within the company. Microsoft ahead of schedule tore apart contracts with hundreds of suppliers and encouraged employees to cut some costs. Snap at the end of August reported on the reduction of 20% of the staff.
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