Meta is looking to cut expenses by at least 10%. For this, the giant is reorganizing its services, which leads it to part with a good number of its employees. In the idea, it is a question of finding another post in the company, if not it is the door. Just like at Google.
In Silicon Valley, staff cuts are notable after the biggest companies hired at breakneck speed during the pandemic.
For several months, Facebook has been faced with slow growth and increased competition. Meta, the parent company, seeks to reduce its expenses by at least 10% and has therefore begun to reduce its workforce, without giving the proportion, by reorganizing its services. In practice, the company is giving affected employees a limited time to apply for other positions within the company, according to current executives interviewed by the wall street journal who investigated this. Failing to find another position internally, it will be the door.
These budget cuts should be the prelude to larger cuts, predict people interviewed by the American newspaper. While some savings will come from overhead reductions, a large portion of them should come from downsizing. The word dismissal has never been pronounced internally, preferring the terms “hiring freeze” and “priorities”. These practices would not be new at Meta.
Same practice at Google
Google too needs to take cost-cutting measures. The company has also asked some employees to apply for new jobs at Google if they want to stay with the company.
This is the case of the Area 120 startup incubator, which belongs to Alphabet, the parent company of Google. Last week, the group warned half of the more than 100 employees that they would have to find another job with the company within 90 days.
Google generally gives employees 60 days to apply for other positions within the company if their job has been terminated.
Difficult context for GAFAMs
In May 2021, Facebook app manager Tom Allison penned a memo titled “Why is hiring so hard right now?” He laments a “major supply and demand imbalance between our hiring needs and the availability of talent.”
Meta’s share price has lost more than 56.6% since the start of 2022, and the company’s market value has fallen by more than $685 billion.
At Google, the stock price has also fallen 27.3% over the past year. In July, Sundar Pichai, chief executive of Alphabet, said Google would slow hiring for the rest of the year and urged employees to be “more enterprising.” He warned that he wanted the company to become 20% more productive.
For its part, Snapchat has publicly announced layoffs. Last week, the company said it would cut around 20% of its staff after increasing its workforce by around 65% since the end of 2020.