Meta to freeze hiring and cut staff: Zuckerberg
Meta CEO Mark Zuckerberg announced in a weekly Q&A session that the company plans to cut most teams’ budgets and cut staff for the first time amid ongoing economic concerns. .
A person at the session told Bloomberg that Zuckerberg said Meta would freeze hiring and restructure some teams to cut spending and set priorities. He said the business will likely be smaller next year than this year.
Zuckerberg said budgets will be reduced for most teams, including those that are growing, but individual teams will decide how to implement changes in staff numbers. That could happen by not replacing employees who leave the company, transferring people to other teams, or seeking to “manage” those who aren’t “successful,” according to Zuckerberg’s remarks that Bloomberg reviewed.
“I had hoped the economy would have stabilized more clearly now,” Zuckerberg said. “But from what we’re seeing, it doesn’t appear to be the case yet, so we want to plan somewhat conservatively.”
He said the hiring freeze was necessary because executives want to make sure they don’t hire people into teams where they don’t expect to have positions next year.
A spokesperson for Meta declined to comment, but pointed to remarks Zuckerberg made about the company’s latest earnings call two months ago. Zuckerberg said at the time that the company planned to reduce headcount growth over the next year.
“Many teams are going to shrink so we can shift energy to other areas, and I wanted to give our leaders the ability to decide within their teams where to double down, where to fill in attrition and where to restructure teams. while minimizing thrash. long-term initiatives,” he said.
The announcement comes after Meta saw its total revenue in the second quarter fall, down 1% from the second quarter of 2021. Total costs and expenses also rose 22%, to 20.4 million. dollars.
Meta expects a further decline in total revenue at the end of the third quarter.
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