Meta, which attracts attention with its investments in Metaverse but lost billions of dollars, is switching to a new strategy. The social media giant, which has lost $ 730 billion in the past period, may be threatening to fire its employees.
Meta moves on to “weekly layoffs”
According to the Wall Street Journal, Meta CEO Mark Zuckerberg wants to minimize internal losses. The company, which owns Facebook, Instagram and WhatsApp, plans to lay off thousands of people this week. A similar threat had previously come from Elon Musk after he bought Twitter.
It seems logical for the social media platform to lay off thousands of people. Sharing its financial reports for the third quarter of 2022, Meta reported a record loss. Shares of the company, which lost $ 730 billion in 16 months and fell to a market value of $ 270 billion, are trading at their lowest level since 2016.
Meta’s firing process is thought to have several pillars. First, TikTok managed to replace Instagram and Facebook in particular. Meta’s steps towards the metaverse have not yet started to generate revenue.
Mark Zuckerberg signaled the layoffs in June. Stating that they are preparing for an economic recession, Meta CEO stated that they will reduce hiring by around 30 percent. “We expect to finish 2023 with an organization of roughly the same size, or even smaller,” he said.
Company manager Mark Zuckerberg stated that investments in the metaverse will begin to bear fruit in about ten years. Stopping hiring because of financial losses can slow down projects and reduce productivity.