Meta Joins Growing List of Tech Companies Letting Workers Go – Crypto Firms to Follow Suit?
With Facebook-owner Meta now joining a growing list of tech companies that are letting workers go, the inevitable next question becomes what crypto companies will do.
Per a report from the Wall Street Journal, “large-scale layoffs” are set to begin at Meta as early as this week. The layoffs could be the largest round in a recent spate of layoffs in the tech industry, the report said, citing “people familiar with the matter.”
The layoffs at Meta followed a round of layoffs at Twitter last week, where the company’s new owner Elon Musk famously fired around half of the company’s staff.
Twitter had around 7,500 employees before Musk's takeover, which would mean that around 3,700 workers lost their jobs.
According to the Wall Street Journal’s sources, the coming cuts at Meta will be smaller on a percentage basis than those at Twitter, although they would most likely be bigger in terms of the number of workers affected.
In an earnings call on October 26, Meta CEO Mark Zuckerberg hinted that cuts were coming, saying the company needs to focus its investments on “a small number of high priority growth areas.”
“So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” Zuckerberg said in the call, while also adding:
“In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
The third quarter was not a good one for Meta investors, with the company losing over $3.5bn. The massive quarterly loss was largely due to massive investments that have not yet paid off in Meta’s metaverse-focused division known as Reality Labs. According to the earnings report, that division alone lost a staggering $3.67bn for the quarter.
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