Meta – Facebook, Twitter, Amazon and more tech giants keep laying off workers, what are the reasons?

meta, facebook matrix, announced that it will lay off 10,000 workers more, in addition to the cuts that he had already made in November. Mark Zuckerberg’s company It follows the path of other US tech giants like Twitter and Amazon after the pandemic.

“This is the timeline you should wait for”, Zuckerberg warned in a message to Meta workers. “Over the coming months, organizational leaders will announce turnaround plans focused on flatten our businesses, cancel lower-priority projects, and reduce our hire rates.”

The November layoffs at Zuckerberg’s company were 11,000 workers. According to CNN, Template it will remain at around 66 thousand, a reduction of 25%.

Meta said it also anticipated a reduction in total spending in 2023, from $92 billion to $86 billion.

“2023 is the year of efficiency in Meta”, stressed Zuckerberg.

But what are they the reasons for this wave of layoffs that seems to have no end?

The reasons for layoffs at Meta – Facebook, Twitter, Amazon and more

The first thing to note is the number of workers who ended up on the street. OK with the portal playoffs, 490 companies have laid off almost 140,000 employees in 2023 alone. Already in 2022, 1,051 companies laid off more than 160,000 people.

The key is in the economic climate that affects the United States. the country is suffering inflation like never before (6% year-on-year), caused by the effects of the COVID-19 pandemic and the War in Ukraine.

Fears of economic recession persist in the country that lead companies to reduce staff and expenses.

Twitter, Dell, Zoom, eBay, Google, Microsoft, and Salesforce, plus Meta and other companies, they left almost 200 thousand workers on the street since 2022. And the number is increasing.

Voices against the measures of the Silicon Valley giants

Is the measure the most appropriate? Kevin Delaney, co-founder of Charter and Quartz, wrote an article about it in Time. In his words, “such layoffs are often a net negative drag on the financial performance of companies over time.

“They don’t consistently make companies more profitable, and employee engagement and customer service are generally affected,” adds Delaney.

For the expert, it is also not clear “that for most companies the cuts are really necessary: many layoffs, including Meta and Microsoft, are still wildly profitable.”

In addition, the little labor protection that exists in the United States benefits the climate of layoffs. Business Insider He stressed that, compared to the laws in Europe, it is much easier to terminate employees.

From what appears, 2023 will continue to be a year of layoffs among the Silicon Valley giants. A story, an endless nightmare.