Meta would lay off “thousands” of employees over the course of this week. That news comes shortly after the decline in profits in the third quarter.
Just recently, Meta reported declining revenue in the third quarter, just like the quarter before. The company’s profit is said to have shrunk by half compared to 2021. Therefore, the news of the impending layoffs does not seem entirely unexpected. Meta is following in the footsteps of Twitter, among others. Elon Musk also went through the workforce there with the hammer a few days ago, but soon came back to it partially. Twitter is also reporting a loss of up to 4 million per day.
It was coming
News of the upcoming layoff came out via the Wall Street Journal. A source “acquainted with the situation” said the layoffs could start as early as Wednesday. Mark Zuckerberg gave some hints that the mass layoff was imminent. For example, an internal Q&A session leaked in which he said that “there must be a lot of people in this company who shouldn’t be here”. In September, Zuckerberg put a stop to hiring new people.
Those moves were followed by an equally ominous statement from Zuckerberg during the previous quarter’s earnings release. In 2023, with Meta’s investments, he wants to “focus on a small number of high-priority areas”. Logically, according to Zuckerberg, this is due to “meaningful growth in some teams, but stagnation or downsizing of most other teams.”
In the same speech, Zuckerberg does express the expectation that Meta will remain about the same size or “slightly” smaller by the end of 2023. At the end of September, the company had about 87,000 employees. The dismissal of “thousands” could therefore have a major impact.