- Like Twitter, Meta could kick off its own round of mass layoffs.
- The measure responds to the situation in which the company currently finds itself after having presented a poor quarterly results report.
- This measure responds to the poor performance that the firm recently presented, reporting earnings below expectations.
Last week kicked off a cycle of terror for thousands of now ex-Twitter workers, as after Elon Musk, CEO of Tesla, once and for all took the reins of Twitter, he began to carry out his restructuring plan to make the social network more profitable.
Part of those measures included an action that has been described as the Thanos of Twitter, since it began a massive dismissal of workers of the firm around the world, approximately 50 percent of the workforce of the platform.
In this regard, Musk addressed the layoffs in a tweet on his official account and pointed out that the reduction was necessary since the company was losing more than $4 million dollars per day.
After what happened, it seems that another of the great technology firms of Silicon Valley, intends to follow the example of Twitter. this week signing Goalled by Mark Zuckerberg, could start its own round of mass layoffs, according to a report in The Wall Street Journal.
the signature owned by Zuckerberg, reported in late September that has more than 87 thousand employees on its payrollso these “large-scale” layoffs are expected to reduce a significant portion of staff members.
Apparently, The measure responds to the situation in which the company is currently, since the social giant recently presented a bad quarterly results report reporting profits in the third quarter of $4.4 billion, about 50% less compared to the $9.2 billion recorded in the same period last year.
The quarterly report also made it clear that the company’s partners are losing faith in the CEO’s decisions. It is enough to see the results obtained to understand the reason for this new mistrust.
Similarly, revenues decreased to $27.7 billion compared to $29 billion last year.
Much of Meta’s money has been invested in the metaverse, a project that worries investors and shareholders and that today seems to be walking aimlessly, in addition to generating losses such as those reported by Reality Labs.
Likewise, revenue in the metaverse has dropped by nearly half year over year to $285 million. This is due, according to Meta CFO Dave Wehner, to poor sales of the Quest 2 VR headset.
“We expect Reality Labs’ operating losses in 2023 to increase significantly year-over-year, so we intend to accelerate Reality Labs’ investments so that we can achieve our goal of increasing the company’s overall operating income over the long term.”“, he pointed.
For its part, mark zuckerberg and company do not want to put aside the work done in the metaverse, since in fact, they want to continue with the launch, since both the executives and Zuckerberg himself are convinced that in the long run, it will be the best choice they can make. despite the relative losses of Reality Labs.
On Wednesday, November 9, the feared layoffs are expected to be announced, which according to experts will affect thousands of people.
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