It’s been a tough few months for the tech industry. Widespread job losses and instability have rocked a sector long thought to be on an unshakable upward trajectory. Back in November 2022, Facebook and Instagram parent company Meta confirmed that it had fired 11,000 employees from its offices across the globe.
The reasons behind these job losses are complex and multifaceted, but many are thought to be a result of both over-employing and overspending on research and development projects like the Metaverse.
It would appear that Meta isn’t out of the woods yet, with news breaking that the tech giant is planning a second major round of layoffs.
According to sources within the company, thousands of job losses could occur as early as this week, leaving many Meta employees concerned about their future with the company.
Last month, CEO Mark Zuckerberg hailed 2023 as Meta’s ‘year of efficiency’, a term many took to mean significant belt-tightening and further job cuts.
With fresh layoffs seemingly imminent, it would appear that these fears were accurate.
Sources within the company claim the new round of job cuts is the result of new financial targets, and that a dip in ad revenue has seen Meta profits tumble.
Given that Meta has spent several billions of dollars on its Metaverse project, it’s perhaps no surprise that there have had to be cutbacks in other areas.
However, Meta isn’t alone. The tech industry as a whole has struggled in recent months, with layoffs at major companies like Twitter, Netflix, and TikTok. This is perhaps evidence of a wider problem in the industry that could rumble on for some time.