Meta to carry out massive layoffs – CryptoActu
After Twitter was energetically acquired by Elon Musk, social networking giant Meta, which was an early and massive bet on the metaverse, may be laying off several thousand of its employees.
Meta collapses, employees suffer
According to information from the Wall Street Journal, The parent company of Facebook, Instagram and WhatsApp is reportedly about to embark on a major social plan that could be the biggest in the industry. In the wake of the pandemic, which greatly benefited its revenue growth, the latest quarterly results showed a Net profit down 52% from the previous year.. The day after its publication, shares of Mark Zuckerberg’s group fell 24.5%.
We face a volatile macroeconomic environment, increased competition, advertising targeting issues and rising costs for our long-term investments, but I must say that our products seem to be doing better than some commentary suggests.
Mark Zuckerberg, CEO of Meta
Despite Zuckerberg’s encouraging statement following the results, from an HR standpoint, the future looks bleak. The axe is expected to fall this Wednesday. Y Should affect several thousand of Meta’s 87,000 employees..
Mass layoffs in the technology sector.
Meta is not alone in cutting its workforce. With the global economic recession, technology companies are paying a high price. In this context, many advertisers are reducing their marketing budgets, which weakens the industry giants, who are resorting to cutting their workforces to drastically reduce their costs.. In fact, Twitter is not alone in abruptly firing its employees. Stripe y Lyft have separated 14% and 13% of their employees, respectively. As for Snap which is the parent company of Snapchat, has announced the layoff of 20% of its employees. Other web3 companies have also decided to do so, such as Dapper Labs.
For Meta, the main reason is its new business model, which is struggling to take off. It is based on the metaverse, as indicated by its rebranding, in which the company has invested $21 billion over the past two years, its forced repositioning has dried up the formidable money-making machine that was Facebook.. The second quarter was already catastrophic.
And if last year, losses had reached the barely credible figure of $10.2 billion.Clearly, 2022 could be even worse for the company.
The mood is certainly gloomy, but it’s probably a good time to venture into the world of cryptocurrencies in a cautious and informed (educated!) way. So, if you’re feeling ready, don’t delay in signing up at. the Bytbit exchange (commercial link).