Meta to freeze to cut costs after fall in first quarter revenue, fall in profit: Report

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Facebook’s parent Meta told employees on Thursday it would freeze hiring to cut costs as it endures tough economic times, The Wall Street Journal reports.

Meta chief Mark Zuckerberg reveals a planned hiatus in hiring during weekly all-hands meeting, Journal informed ofSaying that the move comes as the social media titan plans to cut expenses by at least 10 per cent.

Meta declined to comment on the report, instead referring AFP to Zuckerberg’s remarks in July when the company reported declining revenue and declining profit in its first quarter.

Zuckerberg said during an earnings call that teams would shrink to “re-allocate our energy” as it grapples with a turbulent economy and a growing TikTok phenomenon.

Meta had long posted endless growth, but earlier this year it reported its first decline in global daily users.

“This is a period that demands greater intensity, and I expect we will do more with fewer resources,” Zuckerberg told analysts during an earnings call.

Big tech platforms are suffering from the economic climate, which is forcing advertisers to cut marketing budgets, and Apple’s changes to data privacy, which have reduced exemptions for ad personalization.

Snap and e-commerce colossus Amazon are among tech firms that have announced workforce cuts this year.

In July, Reuters reported that Meta had cut plans to hire at least 30 percent of engineers this year. At the time, Meta CEO Mark Zuckerberg reportedly told employees that the company had lowered its hiring targets, as he warned them to be prepared for a deep economic downturn. Zuckerberg said Meta has slashed its target of hiring engineers to around 6,000-7,000 in 2022, down from an initial plan to hire about 10,000 new engineers.

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