Meta announced Thursday it is cutting back on employment. The decision is one of several moves the Facebook parent firm is making during a period of slower-than-usual development.
“We periodically re-evaluate our talent pipeline according to our business needs, and in light of the expenditure projection offered during the earning period, we are reducing its expansion appropriately,” stated a statement released by Meta spokesperson Andrea Beasley. The firm still wants to “expand our personnel to ensure we focus on long term impact,” the statement read.
The corporation does not presently have plans for layoffs, but the hiring slowdown reflects a turnaround from robust worker expansion during the first three months of 2022. As of March 31, the company’s workforce was 77,805, up 28 percent year-over-year, with 5,800 net new employee additions during the first quarter. Meta aims to reduce or suspend hiring for most mid-to senior-level roles and lately also paused hiring early-career programmers. Business Insider initially revealed Meta’s decision to limit recruiting.
Meta (FB) shares slumped roughly 7 percent Thursday
The news comes a week after Meta recorded its worst sales increase in years during the first three months of 2022, with earnings down 21 percent from the same time in the preceding year. It estimates revenues from the current quarter to be between $28 billion and $30 billion, which would be almost flat compared to the $29 billion it took in during the prior-year period.
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Meta is seeking to adjust its approach to focus on its aspirations for an augmented and VR enabled future. The company is also experiencing intense competition from rivals like TikTok, lost revenue in Russia, issues monetizing actual video content, and challenges to its advertising business from privacy reforms by Apple. In the first three months of the year, Meta’s average pricing per ad fell by 8% year over year; the company announced last week.