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Market

Meta Will Start New Mass Layoffs Next Week

May 19, 2023 - Around 3 mins mins to read

Key Points:

  • Meta executives have announced that a new round of mass layoffs will begin next week.
  • In March of this year, Zuckerberg said that the company planned to cut 10,000 jobs by the end of May, and the company cut 4,000 jobs last month.
  • The layoffs due to massive hiring during the boom period are still happening to cut costs even though the loss-making Metaverse division is still focused on growth.
As VOX reports, Meta executives announced during an employee Q&A session on Thursday that a new round of mass layoffs will begin next week.
Meta Will Start New Mass Layoffs Next Week

The layoffs will affect Meta’s business units, potentially affecting thousands of employees. Although the company’s executives did not confirm the specific size of the layoffs, Zuckerberg said in March of this year that the company planned to cut 10,000 jobs by the end of May and it had cut 4,000 jobs last month.

The afternoon before layoffs occur, the head of human resources at Meta will post a note to employees with details on when the layoff process begins and which teams will be affected. Affected employees will then be notified, followed by unaffected employees. The company will require all employees “whose work allows” to work from home.

Downsizing is one of the clearest examples of how big tech companies are due to over-hiring during the pandemic combined with massive changes in the tech industry at large. It is tightening its belts after nearly two decades of relentless growth.

Metaverse, a technology once famous when CEO Mark Zuckerberg envisioned a future where billions of people would live, work and play in the digital world, has almost “died” after being abandoned by the business world.

Meta Will Start New Mass Layoffs Next Week

In October 2021, Facebook changed its name to Meta and turned to building virtual universes. After a well-known debut, the metaverse immediately became a craze for Wall Street investors. However, the hype couldn’t save the lack of a consistent vision for the final product that led to the demise of the virtual world universe.

In the context that the technology world is moving to a new and more potential trend like AI, the fate of the metaverse is already predetermined.

Recent comments by Mark Zuckerberg and company’s management show that the company focuses on AI (artificial intelligence) and no longer prioritizes the metaverse. Chief Technology Officer (CTO) Andrew Bosworth said the company focuses most of its time on AI. Facebook’s parent company plans to launch an AI ad-generating tool later this year.

However, on April 26, Mark Zuckerberg denied “abandoning” the metaverse to focus on developing AI. He said Meta has been developing both areas for many years now and will continue to focus on both.

The company’s virtual reality projects division reported an operating loss of $3.9 billion for the first quarter of 2023. This is slightly lower than its $4.3 billion loss in the previous quarter.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

Market

Meta Will Start New Mass Layoffs Next Week

Key Points:

  • Meta executives have announced that a new round of mass layoffs will begin next week.
  • In March of this year, Zuckerberg said that the company planned to cut 10,000 jobs by the end of May, and the company cut 4,000 jobs last month.
  • The layoffs due to massive hiring during the boom period are still happening to cut costs even though the loss-making Metaverse division is still focused on growth.
As VOX reports, Meta executives announced during an employee Q&A session on Thursday that a new round of mass layoffs will begin next week.
Meta Will Start New Mass Layoffs Next Week

The layoffs will affect Meta’s business units, potentially affecting thousands of employees. Although the company’s executives did not confirm the specific size of the layoffs, Zuckerberg said in March of this year that the company planned to cut 10,000 jobs by the end of May and it had cut 4,000 jobs last month.

The afternoon before layoffs occur, the head of human resources at Meta will post a note to employees with details on when the layoff process begins and which teams will be affected. Affected employees will then be notified, followed by unaffected employees. The company will require all employees “whose work allows” to work from home.

Downsizing is one of the clearest examples of how big tech companies are due to over-hiring during the pandemic combined with massive changes in the tech industry at large. It is tightening its belts after nearly two decades of relentless growth.

Metaverse, a technology once famous when CEO Mark Zuckerberg envisioned a future where billions of people would live, work and play in the digital world, has almost “died” after being abandoned by the business world.

Meta Will Start New Mass Layoffs Next Week

In October 2021, Facebook changed its name to Meta and turned to building virtual universes. After a well-known debut, the metaverse immediately became a craze for Wall Street investors. However, the hype couldn’t save the lack of a consistent vision for the final product that led to the demise of the virtual world universe.

In the context that the technology world is moving to a new and more potential trend like AI, the fate of the metaverse is already predetermined.

Recent comments by Mark Zuckerberg and company’s management show that the company focuses on AI (artificial intelligence) and no longer prioritizes the metaverse. Chief Technology Officer (CTO) Andrew Bosworth said the company focuses most of its time on AI. Facebook’s parent company plans to launch an AI ad-generating tool later this year.

However, on April 26, Mark Zuckerberg denied “abandoning” the metaverse to focus on developing AI. He said Meta has been developing both areas for many years now and will continue to focus on both.

The company’s virtual reality projects division reported an operating loss of $3.9 billion for the first quarter of 2023. This is slightly lower than its $4.3 billion loss in the previous quarter.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News