Meta, the parent company of Facebook, WhatsApp and Instagram, could lay off around 12,000 employees this week.
The layoff which accounts for about 15% of the company’s workforce is aimed at cutting costs amid the looming recession. Last week, Meta announced that it would halt the hiring process and subsequently restructure the company.
Furthermore, according to the report published in the the wall street journal (WSJ), the layoff could begin on Wednesday. If that happens, Meta will join a growing list of tech companies that include Twitter, Inteland Microsoft who laid off thousands of employees.
king of investors learned that CEO Mark Zuckerberg hinted at the mass layoff during the company’s October earnings call. He identifies the need for a lean workforce as the company intends to focus on a small number of high priority growth areas.
“Overall, we expect to end 2023 with roughly the same size or even a slightly smaller organization than we are today,” he noted.
It will be recalled that Mark faced a lot of backlash from Meta investors who worried about the company’s large size and colossal investment in “Metaverse” which they consider to be imaginary.
Mark Zuckerberg has invested billions of dollars in his dream of a metaverse that he says will succeed the mobile internet.
In a recent interview with Verge MagazineMark noted that over the next five years he wants people to think about Facebook as a “metaverse company” and not as a social media company.
Metaverse is a virtual reality platform where users can connect and enjoy near-life experiences through the use of 3D. Metaverse aims to mimic the physical world through technology.
In a bid to fulfill his dream, Mark Zuckerberg renamed Facebook to Meta. However, his metaverse adventure did not yield the expected results despite the huge investment.
Therefore, some of the company’s investors understand that Metaverse is a distraction for the overall purpose of the company. Currently, Meta is going through a tough time, with its stock price losing around $67 billion in value.