Meta will cut its hiring by 30% due to the impending economic crisis

Mark Zuckerberg, CEO of Meta, owner of Facebook, Instagram and WhatsApp, has announced to his employees a reduction of at least 30% in engineering recruitments and warned them of an economic crisis to come.

Zuckerberg said the company’s 2022 engineering hiring target has been reduced to 6,000-7,000 from an initial 10,000. On top of that, some positions in the businesses will remain vacant after planned cuts; and work efficiency should be greatly increased and employees who will not be able to achieve the higher goals set by management should be excluded. The company has previously warned against these plans and has now given specific numbers.

The company will significantly cut costs in the second half of the year in response; an increasingly degraded macroeconomic environment; and multiple concerns about user privacy and online advertising from regulators and the public, according to Reuters, citing internal Meta documents. Since the start of the year, the company has lost around half of its market value – the problems began after the fourth quarter 2021 earnings report, when it became known that the number of users of its Facebook social network for the first time decreased time.

Meta cuts hiring plans

In addition to tightening its personnel policy, Meta must adjust its development strategy: on the one hand, focus on short videos in competition with TikTok, on the other hand, continue the expensive work of developing metaverse technologies. The company’s chief product officer, Chris Cox, also warned that by the end of the year; the number of GPUs in data centers will have to be five times higher than the current one; to power the AI-based recommendation algorithms of Facebook and Instagram.

But there is also positive news. Reels, Meta’s response to TikTok’s short video has doubled in views over the past year; with 80% of growth coming from Facebook. In this regard, the company’s management plans to implement ad impressions in this section as soon as possible. Other growth drivers for senior executives appear to be business tools on platforms and in-app purchases; this will help mitigate losses caused by Apple iOS privacy policy changes that could reach $10 billion this year alone.

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