- Meta is planning an employment cut.
- The company is already struggling considering their massive spendings on metaverse research.
- Meta stocks were trading at a market price of $9.79 at the time of writing.
What Meta is Planning, Succeed?
2022 is proving to be a platonic year for the employment sector while the industry titans are forced to lay off their workforce amid the worsening global economic aspects. Meta might be the most recent addition to the list as The Wall Street Journal reported that the tech giant is planning to execute an employment cut this year.
This could be the biggest employment layoff in the tech industry, though the percent of cut may be smaller in contrast to Twitter’s. Elon Musk acquired the company in October 2022 and striked half of its existing employees including Parag Agrawal, company’s former CEO. It was reported that he will retain several employees following the “accidental firing”.
Meta stocks have already shed 70% from their value in a year, a downfall of $270 per share since the company attained its all-time high. The shares traded as high as $381 during September 2021. The stock was changing hands at $90.79 at the publication time.
It was formerly reported that Meta has spent around $15 Billion for metaverse research. Still, Horizon Worlds has failed to attract users on the platform. Many people were having trouble finding the virtual spaces they like. This led the company to lower their target to attain 500,000 monthly active users to 280,000.
A Year in Turmoil
Many companies are planning to or have already laid-off a certain percent from their workforce this year. Coinbase, the biggest cryptocurrency exchange globally, let go of 1,100 employees in June 2022 following the question to survive crypto winter. OpenSea cut-off 20% of its workers in July 2020. The company took the step considering the poor economic conditions.
Ford, the multinational automobile maker, planned to cut 8,000 employees from the company in July 2022 following their pivot towards the electric vehicles industry. The organization again announced in August 2022 that they are planning to let go of 3,000 employees.
Philips announced their plan to lay off 5% of its workforce, which translates to around 4,000 workers. Company’s move came following the worsening macroeconomics environment in the industry. Global economy has suffered a lot since the Covid pandemic in 2019 where nations and several organizations had to go through their darkest times.
According to a World Economic Forum research, fear of global recession among the world population is rising. Inflation is expected to grow in the United States and United Kingdom. The Russia-Ukraine war has affected the European countries and is expected to worsen the situation considering the war’s effect on energy supplies.
Source: https://www.thecoinrepublic.com/2022/11/13/meta-planning-a-massive-employment-lay-off-will-it-be-the-biggest-job-cut-of-2022/