“We anticipate losing approximately 10,000 workers. In addition, we anticipate closing approximately 5,000 additional positions for which we are not hiring,” Mark Zuckerberg, Meta’s chief executive officer, told staff in a message to staff. company Its stock has gained 2 percent after the announcement of layoffs. Zuckerberg has set a target of cutting costs by about $5 billion this year. Many tech companies in the US have laid off a large number of workers in the last few months due to reasons like slowing economy and rising interest rates.
Many companies in the tech sector have taken steps like layoffs in the last few months to reduce their expenses due to falling profits. These include Alphabet, which runs Google, and software company Microsoft. The business of tech companies grew rapidly during the pandemic and its impact was also seen on their valuations. Since then, the valuations of these companies have come down significantly due to inflation and increase in interest rates. Zuckerberg in the message to the employees told Was, “Weak macro economic conditions, increased competition and reduction in advertising have resulted in our revenue being much lower than expected. I made a mistake and I take responsibility for it.” He said the company needed to focus its resources on areas with high potential for growth, such as AI, advertising and the Metaverse project.
The company had seen steady growth over the years, but at the beginning of last year, it saw a decline in its daily users for the first time. The business of big tech companies has been affected. Because of this, the marketing budget is also being reduced. Apart from Amazon involved in big e-commerce companies, thousands of workers have also been removed in micro-blogging site Twitter and software company Microsoft.
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