Hiring freeze and layoffs: Meta announces austerity measures
Meta CEO Mark Zuckerberg has imposed austerity measures on his company and imposed a hiring freeze. Layoffs are also imminent due to the poor economic situation. In order to reduce costs, the company wants to restructure and realign itself.
By the end of 2023, Facebook parent company Meta will most likely be a smaller company than before. According to an insider, CEO Mark Zuckerberg announced this during a weekly question and answer session. Like the news agency Bloomberg reportedZuckerberg said the company will impose a hiring freeze and begin restructuring.
Accordingly, Meta wants to reduce its costs and reposition itself. The budgets in most teams are to be cut for this purpose. This also means that employees can be transferred to other teams and positions are not filled. It is also possible that Meta will part with some employees.
Meta: Decline in sales and increased competition
The austerity measures are believed to be the first major budget cuts since Facebook’s inception in 2004. They’re also an admission that Meta’s ad revenue growth has slowed due to increased competition. Mark Zuckerberg said:
For the first 18 years of the company’s existence, we’ve grown rapidly basically every year, and recently, for the first time, our sales have been flat to slightly declining.
He had hoped that the economic situation would stabilize. However, since that is not the case, the company has to plan more conservatively.
An expensive bet on the Metaverse
Far from economic pressures, Meta’s advertising business is suffering from Apple’s new privacy restrictions on tracking iPhone users. Meanwhile, TikTok is luring numerous users away from the Instagram subsidiary.
Mark Zuckerberg has also made an expensive bet on the so-called Metaverse since Facebook was renamed Meta. He expects virtual reality to be a place where people can meet and communicate with one another. However, it may be several years before the system is mature enough.
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