According to the Wall Street Journal, Meta is quietly eliminating a significant number of employees. It is not yet clear how many people will be affected in this major cut, but employees only have 30 days to register for new jobs in the company.
CEO Mark Zuckerberg said that the reason Meta is reducing its staff is because the company is saving costs amid the economic downturn. The CEO warned analysts in a phone call that Meta would temporarily slow down recruitment and would need to complete more work with less manpower.
In a recent announcement from Meta, the company's second quarter sales results unexpectedly declined. Specifically, revenue only reached 28.82 billion USD compared to the investor's forecast of 28.94 billion USD. Accordingly, revenue in the second quarter of 2022 decreased by about 1% compared to 2021. This is the first time Meta has recorded a decline in revenue, mainly due to economic decline that many companies have to cut advertising costs.
The company has informed employees about the situation Meta is facing, and has asked managers to be forced to fire if they work at low efficiency. Meta also deported a number of projects in 2021, spending about 10 billion USD ineffectively. Dozens of contractors said they no longer cooperate with Meta.
