Meta reportedly suspends all hiring, warns staff of possible layoffs

Like many other industries, the technology sector has felt the pressure of the global economic slowdown this year. Meta is not immune to this. Reports in May suggested the company would slow hiring this year. Now, Bloomberg reports that Meta has suspended all settings.

CEO Mark Zuckerberg is also said to have told employees that more restructuring and downsizing are likely on the way. “I was hoping that the economy would have stabilized more significantly by now, but from what we’re seeing it doesn’t seem like it yet, so we want to plan a bit more conservatively,” Zuckerberg reportedly told employees.

Accordingly, the company plans to cut budgets for most of its teams Bloomberg. Zuckerberg should leave the personnel decisions to the team leaders. Actions may include moving employees to other teams and not hiring replacements for employees who leave the team.

Meta declined to comment on the report. The company referred Engadget to comments Zuckerberg made during Meta’s last earnings call in July. “This is even more of a focus now than it was last quarter given the ongoing trends,” Zuckerberg said at the time. “Our plan is to steadily reduce staff growth over the next year. A lot of teams will shrink so we can shift energy elsewhere, and I wanted to give our leaders the ability to make decisions within their teams about where to double down, where to even out attrition, and where to restructure teams while still thrashing for the long haul want to minimize run-time initiatives.”

In an earnings report, Meta announced that its April-May quarter revenue fell by one percent year-on-year. It’s the first time the company has reported a drop in sales.

The news of the hiring freeze follows a report last week that suggested Meta quietly ushered some workers out the door rather than conducting formal layoffs. In July, it emerged that the company was asking team leaders to identify “low performers” ahead of potential job cuts. The company is said to have cut costs on other fronts, such as cutting contractors and shelving some projects at its Meta Reality Labs division. This reportedly included a dual-camera smartwatch.

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https://www.engadget.com/meta-hiring-freeze-restructuring-layoffs-184811966.html?src=rss Meta reportedly suspends all hiring, warns staff of possible layoffs

Russell Falcon

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