The economic crisis has affected Meta this year as well. In May, there were reports that the company would slow the pace of new hiring this year. Now Bloomberg reports that Meta has suspended hiring.
CEO Mark Zuckerberg also told employees that restructuring and downsizing were likely coming. “I had hoped the economy would have stabilized by this time, but from what we’re seeing, it hasn’t yet, so we want to plan somewhat conservatively,” Zuckerberg said.
According to Bloomberg, the company plans to cut budgets for most of its teams. Zuckerberg is reportedly leaving the decision about staffing levels in the hands of team leaders. Measures could include moving people to other teams and not hiring replacements for departing employees.
In its earnings report, Meta said its revenues were down one percent in the April-May quarter compared to last year’s period. This is the first time the company has reported a drop in revenues.
Rumors of a hiring freeze stemmed from a report released last week. It said Meta was quietly kicking some employees out rather than conducting formal layoffs. In July, it was reported that the company had asked team leaders to identify “low performers” employees in anticipation of possible layoffs.
