Meta Intended to Fire Employees After Failures Of Business Strategy
The Wall Street Journal reports that Meta plans to let off thousands of staff in the second week of November, citing sources familiar with the situation.
The employment freeze that Meta put in place in September was followed by these layoffs by two months. The company said personnel reductions would result in a 10% decrease in costs.
After doubling down on its metaverse endeavor since October 2021, the company has failed to see success with its metaverse-focused business strategy. Reality Labs, the metaverse division of the company, lost $3.7 billion in the third quarter of this year, bringing its year-to-date loss to $9.4 billion.
With more than 87,000 employees, the layoffs may rank among the biggest personnel cutbacks at a major internet company.
It is not the first company to reduce staff. Web3 companies Bitmex, Dapper Labs, and Mythical Games all made layoffs during the first week of November. Other tech companies have reduced their workforces due to the challenging business environment.
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