Social media and tech titans experienced rapid growth during the pandemic and subsequent lockdowns. In 2020 and 2021, Meta added over 27,000 new employees. They're seeing a compression now that some semblance of normalcy has returned.
The WSJ reported on Nov. 6 that several thousand employees could be affected, citing people familiar with the situation. According to the report, the platform is anticipated to make a formal announcement this week.
According to the sources, its employees have already been told to cancel non-essential travel. As of September, the company reportedly employed over 87,000 people.
Cooling Interest in the Metaverse
Mark Zuckerberg stated during the company's third-quarter earnings call in late October that some teams will continue to grow. However, he revealed that the majority of the company's teams would remain flat or shrink over the next year.
Meta was disappointed by the earnings report. It reported a 52% drop in net income to $4.4 billion from $9.2 billion the previous year. Expenses skyrocketed, particularly for Reality Labs, the company's Metaverse division. The company's augmented and virtual reality projects generated a $3.7 billion operating loss during the quarter.
Altimeter Capital, an investment firm, wrote an open letter to Zuckerberg and Meta. In it, they proposed reducing staff and hardening its Metaverse ambitions, reflecting growing shareholder dissatisfaction. Since the start of the year, the company's stock price has dropped 73%.
Horizon Worlds, Meta's virtual world, has received a lukewarm reception. Over the course of the year, the number of users has dropped to less than 200,000, indicating a significant downward trend.
That hasn't dimmed Zuckerberg's vision for the company to dominate the virtual world over the next decade.
Meta Pushback Installation
Others are skeptical. Concerns about the company's track record regarding data privacy and security have been expressed.
Internal document disclosures and whistleblower revelations have further tarnished the company's reputation. It's no surprise that opposition to Meta's monopolization of the Metaverse, as it does of social media, is growing, as are the company's bills.
What do you think about Meta's layoffs? Let us know your thoughts by sharing this article on social media.