As with many other industries, the tech sector has been feeling the squeeze of the global economic slowdown this year. Meta isn’t immune from that. Reports in May suggested that the company would slow down the rate of new hires this year. Now, Bloomberg reports that Meta has put all hiring on hold.
CEO Mark Zuckerberg is also said to have told staff that there’s likely more restructuring and downsizing on the way. “I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively,” Zuckerberg reportedly told employees. The company is planning to reduce budgets for most of its teams, according to Bloomberg. Zuckerberg is said to be leaving headcount decisions in the hands of team leaders.
Meta declined to comment on the report. The company directed Engadget to a comment that Zuckerberg made during Meta’s most recent earnings call in July. “Given the continued trends, this is even more of a focus now than it was last quarter,” Zuckerberg said. “Our plan is to steadily reduce headcount growth over the next year. Many teams are going to shrink so we can shift energy to other areas, and I wanted to give our leaders the ability to decide within their teams where to double down, where to backfill attrition, and where to restructure teams while minimizing thrash to the long-term initiatives.”
In that earnings report, Meta disclosed that, in the April-May quarter, its revenue dropped by one percent year-over-year. It’s the first time the company has ever reported a fall in revenue.
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