Meta Layoff: Meta has again announced layoffs, which is showing the deepening crisis in tech companies.
Meta Layoff Update: Facebook’s parent company Meta has again announced the layoff of 10,000 employees. The company has already laid off 11,000 employees in the past. Meta CEO Mark Zuckerberg has said in a message to his employees that, we are going to cut the number of our team by 10,000. Along with this, he said that it has been decided to abolish 5,000 such posts for which the hiring was not done till now.
This retrenchment in Meta is being linked to the ongoing restructuring in the company. The company is making major changes in its organization structure as well as canceling low priority projects. Apart from this, the company is also going to reduce hiring. After the news of retrenchment of 10,000 employees in Meta, the stock of Meta is seeing a tremendous boom. Meta’s stock is seeing a jump of 2 percent in the pre-market opening.
The major reason for the layoffs is the deepening crisis on American tech companies. On top of that, the bad results of meta have increased the problem. Meta’s advertising revenue has decreased. Earlier in November 2022, Meta had announced the layoff of 11,000 employees. For the first time in the 18-year history of Facebook’s establishment in 2004, such a huge layoff has been done, which indicates a huge decline in revenue from digital advertising.
America was similarly troubled by skyrocketing inflation and expensive debt. On top of that, the Silicon Valley Bank and Signature Bank crisis have created a banking crisis after the crisis of tech companies there. On top of that, layoffs by a company like Meta point to the cloud of crisis hanging over the US economy. There is a possibility of recession in America again and again. Questions are now being raised regarding the increasing valuation of tech companies during the Covid epidemic.
