After Twitter, Facebook? Meta is on the verge of laying off many of its employees, according to a Wall Street Journal report. Blame it on poor results due in particular to its metaverse project. What’s going on at the social media giant?
Meta is preparing to make massive layoffs
Sources close to the case would have revealed this information to the Wall Street Journal. In 18 years of existence, Meta (formerly Facebook), had never had to lay off employees in waves. We do not yet know the share of employees who will be ordered to pack their bags, but the figure could be several thousand :
“The number of Meta employees who could lose their jobs could be the largest yet among tech companies.»
The news is expected to be announced this week. In October, Facebook CEO Mark Zuckerberg said he expected the number of employees to be reduced for some teams. He then asserted:
“Some teams will grow substantially, but most others will not change, or will be reduced in the coming year.»
Meta had taken advantage of the Covid-19 pandemic to hire massively, as the world increasingly turned to online tools. But the financial results did not necessarily follow. We explained it to you at the end of last month, the social networking giant had recorded disappointing revenues for the third consecutive quarter.
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The metaverse once again pointed the finger
The culprit would largely be the metaverse : the Reality Labs division would indeed have lost 3.6 billion dollars in the previous quarter. And Horizon World, the virtual world of Meta, still fails to really seduce. Last week, the shareholders had also stepped up to the plate. In an open letter to Mark Zuckerberg, Altimeter Capital recommended cutting spending on the metaverse… And lay off employees.
But Mark Zuckerberg is convinced that the metaverse is the new frontier, and that he is building the uses of tomorrow. He recently explained:
“We are clearly doing a major job. This is a massive task, which will often have to take several versions of the same product. to be widely adopted. »
Against and against the shareholders, the boss of Meta therefore continues its momentum. Will he give a sign of appeasement to investors by reducing the Reality Labs team this week ? This is what will have to be monitored in the days to come.
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Source: Wall Street Journal
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