Zuckerberg confirms staff cut, first in 18 years – Tlc

Meta (formerly Facebook) prepares for the first staff cut in its history, effectively putting an end to almost twenty years of uninterrupted growth. After recent rumors, Mark Zuckerberg confirmed to his employees that the company will freeze hiring and cut budgets for many of the company’s teams, a move that will lead to layoffs in weaker sectors. No precise number, but about ten days ago the US media had announced that Zuckerberg’s goal is to reduce costs by at least 10% in the coming months, in response to stagnant growth and intense competition and while now it is betting everything on metaverse. And after the initial losses following the news, Meta still recovered on Wall Street by traveling over 2%.

Already in May, the founder and chief executive of Meta had frozen the hiring of engineers and researchers low-level data. In July, however, he had warned employees to fasten their seat belts for an “intense period” of 18-24 months and asked managers to identify low-performing workers. Now the announcement has come that has everyone frozen. In his weekly ‘back-and-forth’ meeting with employees, Zuckerberg predicted that Meta will likely be smaller in 2023 than this year, according to testimony from some in attendance.

“For the first 18 years of the company’s life, we have grown rapidly every year, but recently our turnover has been flat or slightly declining for the first time,” he noted. stabilized, but from what we see it doesn’t seem to be the case yet, so we want to plan a bit conservatively, “he added. This year Meta showed the first signs of slowing down after an impetuous development. In February, Zuckerberg’s company announced its first quarterly loss of daily active users, while in July it recorded its first quarterly decline in revenue (1%: $ 28.8 billion) and profits (-36%: 6.69 billion) dollars).

There are three reasons for the braking. The first is Apple’s privacy policy update, which has made it harder for tech companies to track users across apps, impacting Meta’s ad sales. The second is the growing competition, especially of TikTok, which is attracting advertisers, along with profitable Gen Z and millennial users: TikTok’s Meta clone, Instagram Reels, struggles to compete. Finally, the large investments in the metaverse, which are dragging down operating profits. In short, a deadly cocktail, so much so that for the first time since 2015 Zuckerberg is no longer among the ten richest people in America.

Since September 2021, the entrepreneur has lost more than half of his fortune ($ 76.8 billion), going from number 3 on the Forbes list of the 400 richest people in the United States to number 11: behind Walmart heir Jim Walton, former New York City Mayor Michael Bloomberg and other tech moguls such as former Microsoft CEO Steve Ballmer and Google founders Sergey Brin and Larry Page. No one in America has lost as much money as he has in the past year.

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