CEO Mark Zuckerberg admits that he is primarily responsible for the company’s mistakes.
Meta is also the parent company of Facebook, Instagram and Whatsapp. All Over Press
Meta, the parent company of Facebook, Instagram and Whatsapp, will start laying off several of its employees today, says the CEO Mark Zuckerberg. Reported about it The Wall Street Journal.
The future layoffs are expected to affect thousands of Meta employees. This is the largest layoffs in the technology sector so far this year and the largest in Meta’s history. At the end of September, the company employed more than 87,000 employees.
According to the WSJ, Zuckerberg seemed downcast at Meta’s meeting on Tuesday. He said he was responsible for the mistakes made by the company.
Zuckerberg admitted on Tuesday that his over-optimism about the company’s growth has led to hiring too many employees.
The stock fell considerably
According to the WSJ, Meta’s stock has fallen by more than 70 percent this year.
At the beginning of the year, it was reported how Meta’s shares plummeted after the company announced its forecast. The reason was the weak profit forecast given by the company and at the same time drastically increased expenses. Investors got scared, as a result of which the value of the shares fell by around 22 percent at the end of February. At that time, the value of one share became 250 dollars.
Meta’s figures announced in October were also gloomy reading: Meta’s share price was said to have fallen by almost 20 percent, and the company’s turnover in the third quarter of the year was 27.7 billion, which is less than in the same period last year.
One of the reasons for the difficult situation is that Meta has to compete with Tiktok for people’s attention at the same time, which is why the company lowered its profit forecast at the beginning of the year.
In addition, Apple’s reforms regarding user privacy have made it more difficult to target advertising, which has reduced Meta’s ad revenue. Apple now requires app publishers to ask users for permission before collecting data.
Facebook’s parent company changed its name to Meta last October. Meta is also the parent company of Facebook, Instagram and Whatsapp.