HomeLifestyleCost cutting in Facebook: Ban on recruitment, also preparing for layoffs

Cost cutting in Facebook: Ban on recruitment, also preparing for layoffs

Highlights

Meta CEO Mark Zuckerberg said big things in the weekly dialogue program.
He said- The era of rapid development of Meta has passed now.
Now Meta has been forced to cut its expenses.

New Delhi. Facebook’s parent company Meta has also decided not to hire new employees and lay off employees. For the first time since its inception, the company has decided to reduce the number of employees. Meta CEO Mark Zuckerberg said in his weekly interaction with employees that the period of rapid development of Meta is now over. Therefore the company will stop hiring and reduce the number of members in some teams to reduce expenses.

According to a report in Live Mint, the company will also cut the budget given to the teams in the coming times. Those teams will also be given less money, whose growth is good. This means that teams from which employees will be removed will not get new members and they will have to run with fewer employees.

Shares fell 60 percent in 1 year

Zuckerberg said that, “We thought that by now the economy would be stable. But, now we are seeing that this has not happened. So we have to have a somewhat conservative plan.” Significantly, the stock of Meta has fallen by 60 percent so far this year. On Thursday also the company’s shares fell up to 3.7 percent.

Also read – Mark Zuckerberg’s wealth reduced to half, reached number 20 in the list of nobles

Decreasing advertising revenue

The decision to freeze cost cuts and hiring shows that this meta’s ad revenue growth is slowing and it faces stiff competition. Meta’s Instagram is getting a tough competition from Tiktok and a large number of young users are joining Tiktok. Apart from this, Zuckerberg’s dream project Metaverse is also weighing heavily on the company. So now Meta has been forced to cut its expenses.

Meta had also said some time ago that it would hire fewer employees in the management department this year. Apart from this, the company has also stopped giving full time jobs to summer interns. Meta had 83,500 employees as of June 30 and added 5,700 new employees in the second quarter.

Also read – Facebook sued for violence against Rohingyas, sought compensation of Rs 12 billion

Twitter and Google are also in trouble

It’s not that only Meta’s ad revenue growth is slowing down. Twitter and Alphabet are also battling the same crisis. In May itself, Twitter stopped hiring and asked employees to reduce travel and marketing expenses. Similarly, Google’s parent company Alphabet had also said that it will slow the hiring of employees in the second half of the financial year.

Tags: business news, Facebook, Job, job loss, Jobs

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