Facebook owner Mark Zuckerberg is expected to announce a lot of job cuts

• Meta, the company that owns Facebook, is rumoured to be planning to lay off thousands of employees this week.
• CEO Mark Zuckerberg expects certain teams to “stay flat or shrink” next year.
• Meta employs 87,000 people across Facebook, Instagram, and WhatsApp.

Meta, the company that owns Facebook, is rumoured to be planning to lay off thousands of employees this week. US media said over the weekend that the job cuts could be announced as early as Wednesday. When Meta’s third-quarter results were bad, CEO Mark Zuckerberg said that the company might have to cut staff.

“In 2023, we’re going to focus our investments on a small number of high-priority growth areas,” he stated.

Meta employs 87,000 people across Facebook, Instagram, and WhatsApp. Plans for job losses mirror difficulties in the tech sector amid sluggish global economic development.

Mr. Zuckerberg expects certain teams to “stay flat or shrink” next year.

“In aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organisation than we are today,” he said.

As prices and interest rates go up, marketers are cutting their budgets, which hurts Facebook and Google.

Stripe and Lyft announced large-scale layoffs on Thursday, and Amazon froze corporate hiring.

Since Elon Musk bought Twitter, half of its 7,500 employees were laid off last week.

Meta has to deal with competition from TikTok, Apple’s new privacy features, a lot of money spent on the metaverse, and laws.

Mr. Zuckerberg expects metaverse investments to yield results in a decade.

He’s reorganising teams to cut costs. In June, Facebook slashed plans to hire engineers by at least 30% and warned employees to prepare for a recession.

In an open letter to Zuckerberg, Meta’s stakeholder, Altimeter Capital Management, urged the company to decrease employment and capital spending. Meta lost investor confidence as it increased spending and focused on the metaverse.

The company’s market valuation is $600bn (£524bn). The global economic downturn is making big tech feel the pain.

Many of these companies, like Meta, rely on billions from digital ads. It’s why Meta is free to use. They pay in data and eyeballs by watching ads.

Large corporations are still getting cash, so don’t feel too bad. Most of this money comes from small and medium-sized firms, not major brands.

As costs rise and customers spend less, corporations may cut their marketing budgets.

Every three months, public companies like Meta have to give information about their finances to the public.

Someone who was with Mark Zuckerberg at his last one said he “didn’t look like his usual self,” suggesting he was stunned by the drop.

And now, he’s supposedly planning the biggest layoff in Meta’s 18-year history.

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