Financial Associated Press, September 30 (Editor Zhou Ziyi)
Facebook parent company Meta announced on Thursday that it will freeze hiring
and reorganize some teams to cut costs and adjust priorities.
Meta CEO Mark Zuckerberg announced the decision during a
weekly Q&A session. The speech was arguably the firm's clearest statement
yet: Meta will further cut costs and freeze hiring amid growing competition and
slowing ad revenue.
The company will cut budgets for most teams, even those
that are growing, according to one of the people who attended the meeting. Some
media commented that reorganizing the team may mean the adjustment and transfer
of personnel within the company, and the dismissal of those who lag behind.
It can be seen that Meta is trying to avoid using the
word "layoff" as much as possible.
Zuckerberg said, "I would have expected the economy
to stabilize more noticeably so far, but it doesn't seem to be the case so far,
so we want to plan conservatively to a degree."
Earlier notice
Meta earlier this year said it planned to slow hiring for
some management positions and delay the release of full-time jobs to summer
interns.
Zuckerberg warned in July that Meta would "steadily
reduce headcount growth" and downsize some of its teams to focus on other
areas of focus, such as Reels, the Metaverse, and more.
Meta plans to cut spending by 10% in the coming months,
according to an insider last week. Looking at it now, this may be a prelude to
the announcement of a hiring freeze and team restructuring.
The person also said that "reorganized"
employees can apply for positions within the company within 30 days, and if a
new position is not found within a month, the employee will be fired.
Meta outlook is not optimistic
Since the beginning of this year, the situation of Meta
Company is not optimistic, and the revenue and profit of the second quarter
financial report both declined. Some analysts predict that the company's
third-quarter revenue will decline again.
Meta shares have continued to fall this year, down 59.4%,
and are currently trading at $136.41 per share.
In addition, the latest data shows that Zuckerberg’s assets
have dropped to $57.7 billion, and he has fallen out of the top 10 of the
Forbes list of America’s richest people.
After Zuckerberg's announcement, Meta's shares closed at
$136.41 per share on Thursday, down 3.67 percent.
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