According to Bloomberg, Facebook owner Meta Platforms Inc. is halting recruiting and rearranging teams to minimize expenses, citing Chief Executive Mark Zuckerberg.
According to Zuckerberg, at a weekly Q&A session with staff, Meta would cut spending across the firm as it adjusts priorities, will not fill unfilled jobs or replace departed people, and may manage out underperformers.
Mark Zuckerberg said during the meeting:
“I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively.”
The actions follow a July warning from Meta that it will steadily curtail personnel expansion due to a decline in advertising revenue growth and growing competition from competitors such as TikTok. According to the Wall Street Journal, Meta has been striving to decrease expenses by at least 10%, with worker cutbacks being one component of the approach.
“For the first 18 years of the company, we basically grew quickly basically every year, and then more recently our revenue has been flat to slightly down for the first time.”Zuckerberg told staff on Thursday
In the second quarter, Meta failed on both profitability and sales, with its metaverse and virtual-reality segment Reality Labs losing $2.8 billion in the three months.
Meta has announced crypto-related efforts in recent months, including the acceptance of digital collectibles and NFTs on Facebook and the ability for users to cross-post digital assets across Instagram and Facebook.
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