Facebook’s parent company Meta is reportedly planning large-scale layoffs as soon as Wednesday, according to the Wall Street Journal.
The Menlo Park-based company has about 87,000 employees worldwide. This would be the first major cuts in the company’s 18-year history.
One reason? Meta is the worst performer in the S&P 500 this year with shares down roughly 73% over the past year. Last month, Meta CEO Mark Zuckerberg hinted at the layoffs during an earnings call.
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“The problem is the concept itself is still in the early stages and it’s not going to bring revenue to him any time in the near future,” said tech analyst Tim Bajarin.
SJSU tech expert and professor Ahmed Banafa said the recent changes at Apple also impacted Meta’s bottom line.
“When Apple instated this kind of monitoring on their new operating system, that will tell you that 'Facebook is following you, do you want Facebook or not?' that trimmed a lot of income from advertising,” he said.
The expected layoffs at Meta come just days after Elon Musk announced mass layoffs at Twitter.
“There is a big picture here, which is all tech companies are preparing for the worst. They know that inflation is a big problem. A lot of uncertainly about the elections two days from now. They want to see which direction the Congress will go,” Banafa said.
