Meta 'Quietly' Begun Layoffs in Cost-Cutting Bid
Surrendering to the wave of layoffs Meta Platforms has begun the process of laying off its employees quietly in a bid to cut expenses by 10 percent.
The social media major is taking the step considering the increased competition, and stalling growth, according to the report by The Wall Street Journal (WSJ), which cited people familiar with the development.
Reportedly, the company has begun quietly cutting off jobs and the number of employees being affected by the process is significant. Also, the reports suggest that the California-based company has given a limited time to join the company's other departments within the company, as it is also reorganizing departments.
Additionally, the layoffs are just the beginning as the company's plans of cost-cutting may be much higher. The company is cutting costs in overhead and consulting as well, and according to the people familiar with the development, the major chunk of the savings will come out of layoffs.
Meta spokesperson Tracy Clayton while talking to the WSJ in response to questions, referred to the company CEO Mark Zuckerberg's July statement, in which Zuckerberg had mentioned the company's need to reallocation of resources towards corporate priorities citing increased pressure on the business.
Although, in terms of human resource policy, Meta employees can reapply for jobs within the organization in under 30 days and the policy is called a '30-Day List'. However, the employees who fail to find a new job within the organization, are subjected to termination. In alignment with this, some other organizations are also coming up with the mentioned policy.
Going on a similar line, tech giant Google has also fired over 100 employees in order to fulfill its requirement of cost-cutting. The company has a policy of giving 60 days to terminated employees for reapplying and finding another job in the organization. However, for the recently laid off employees, the period is of 90 days.
Notably, Meta and Google are not alone in the wave of laying off employees in a bid to cost-cutting. There are other major companies that have been doing this in almost the same and some have announced a 'hiring freeze' as well. The companies that have announced a hiring freeze include, Meta, Coinbase, and Wayfair.
Chinese multinational technology and entertainment company, Tencent has laid off over 5,500 employees, and Microsoft has laid off over 1,810 employees. While, Shopify has terminated over 1,000 employees, and popular OTT and streaming platform Netflix has laid off over 450 employees. The list is followed by Better.com, whose CEO opt for an epic tactic of laying off employees by laying off his employees over a zoom call and they have laid off over 4,500 to 4,700 employees till now, according to the standard sources.
The list doesn't end here, popular social media platform Snapchat parent company Snap has terminated over 1,280 employees. While on the other hand, the microblogging site Twitter has shown its doors to over 100 employees. Also, HCL Technologies has laid off over 350 who were employees working on Microsoft’s news-related products.