Zuckerberg announces universal hiring freeze: Is Meta imploding?
Times are dire for Meta. The company that experienced explosive growth for over a decade is facing something that it is not used to before - cost cuts. The parent of Facebook, Instagram, and WhatsApp has decided to cut costs by 10%, including staff reductions. The company's CEO Mark Zuckerberg announced the same during an internal all-hands call.
Why does this story matter?
- Meta (earlier Facebook) has been growing for 18 years. It's usual for a company that goes through such exponential growth to have a lean period.
- But Meta's isn't just any lean period. The company has announced a universal hiring freeze. Its stock has fallen nearly 60% this year.
- It needs to be seen whether these measures will help the company or not.
Teams that are growing will also face budget cuts
Meta plans to cut costs across the company. This includes teams and divisions that saw a lot of investment recently. Teams that are growing will also face budget cuts. Some groups within the company will face restructuring. The Facebook parent will also freeze hiring. According to the Wall Street Journal, the company's budget cuts will go as far as 10% in the coming months.
'There are people in the company who shouldn't be here'
Meta has been silently reducing staff in the company as part of its cost-cutting drive. In June, Zuckerberg said about laying off people, "I think some of you might decide that this place isn't for you, and that self-selection is OK with me." "Realistically, there are probably a bunch of people at the company who shouldn't be here," he added.
How many people will lose their jobs?
It's unclear how many people will lose their jobs as part of Meta's cost-cutting. The company's second-quarter report suggests that it has 83,553 employees. According to internal sources, the job cuts are affecting even those with a good reputation and strong performance reviews. By the end of 2023, the company would be "somewhat smaller," said Zuckerberg.