Thousands Of Meta Workers Are Expected To Lose Their Jobs!
The Global recession has affected the macroeconomic aggregates of the economy. Not only has the Profitability and the performance of the companies decreased over time, but also there has been a spike in the company’s operational expenses. This is not a positive sign for the economy as a whole.
Most companies have now decided to cut down on their expenses to sustain in this period of recession. The only way with the help which this is possible, according to them, is to reduce the disbursal of payment during payout.
Why Did The Company Decide To Layoff The Employees?
Most multinational companies have decided to lay off their employees so that they can reduce their expenses for the time being. This decision has been taken by the parent company of Facebook, Meta.
In a recent meeting, it was decided that thousands of employees would now be removed from the company. According to the sources, this would be the largest cut in the workforce of the company in the recent 10 years.
The fate of thousands of employees would be decided in this coming week when the decision to remove the employees would be finally taken. Meta had already more than 90000 employees until the recent quarter.
What Are The Dynamics Of Meta?
This is going to be the worst slump in the history of the multinational company. The recent failure of the metaverse platform had actually cost the company a lot in terms of its share value which has declined by 70% in the last 6 months.
Not only this but also the revenue generated by the advertisements have also been reduced to a great extent. The user base of the platform has also plummeted in the recent past.
This basically means that all the sources of revenue have been affected and the company is not able to sustain its operations as planned.
The last earnings of the quarter have been reported to be the lowest. In light of the risk of the upcoming recession, the company has taken its decision to reduce its workforce by more than 1000 employees.
The situation is likely to get better by the end of 2023, but nothing could be said with certainty for the time being. It all depends upon the Global dynamics which have to be viewed in light of the upcoming changes.
Apart from this, the capital expenditure of the company has also increased by 39 billion dollars. The chief executive of the company had infuriated many of the stakeholders of the company due to which they made an exit from the company.
One such shareholder is Altimeter Capital Management. Many of the shareholders are not at all satisfied with the stance of the company with respect to its spending on Metaverse.
According to them, this is the worst investment by the company. If the company does not take back its decision then it would be able to lose a lot of its value. An attempt is being made to have board meetings so that a better prospect could be worked upon in the long run.
However, the officials of the company have no plan to roll back its decision with respect to its stance on Metaverse.
It can be concluded that all of these factors are contributing to the loss of the company. This is something that has to be cured as soon as possible or else it would result in a large-scale exodus of employees thereby affecting employment in the economy over the long run.
This is very important as the fate of thousands of employees are being dependent on this factor over a period of time.
I've been writing about LGBTQ issues for more than a decade as a journalist and content writer. I write about things that you care about. LGBTQ+ issues and intersectional topics, such as harmful stories about gender, sexuality, and other identities on the margins of society, I also write about mental health, social justice, and other things. I identify as queer, I'm asexual, I have HIV, and I just became a parent.