Meta staff are now wary of potential layoffs following a declaration by Meta on Thursday that it would suspend hiring for what it termed “further restructure,” as reported by Bloomberg News.
The announcement follows the recently forced headcount reductions at major internet companies as advertisers cut spending in anticipation of a recession.
CEO Mark Zuckerberg explained the adjustments to the company’s staff in communications, citing a lack of predictability in the macroeconomic climate.
“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,” Zuckerberg told employees during a weekly Q&A session.
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In recent months, Meta has put a lot of emphasis on Virtual Reality (VR) and building its own metaverse. It is also rushing to develop short-form video products, like Reels, that can compete with TikTok.
Zuckerberg added that most teams’ budgets will be reduced by Meta and that each team would have to decide how to manage personnel adjustments signalling hard times for the parent company.
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After a surge in the success that escalated during the epidemic, the tech sector has been experiencing a downturn lately.
Many internet companies are suspending or stopping hiring in the face of a more generalized global economic slowdown, rising interest rates, and regulatory challenges.
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