Mark Zuckerberg Set for Mass Layoffs after Meta's Stock Price Plunges by 70% in 3rd Quarter

• Meta boss Mark Zuckerberg said he would take responsibility for employees who will be affected by the move after Meta's stock price plunged by 70%
• Amid the global economic turndown, Meta lost $80 billion of its value in October, forcing Zuckerberg to take action
• Meta reported that its profit more than halved to $4.4 billion in the third quarter from $9.2 billion a year earlier

Facebook chief executive officer Mark Zuckerberg has announced that the social media's parent company will lay off thousands of jobs.

The business magnate said he would take responsibility for employees who will be affected by the move after Meta's stock price plunged by 70%.

Amid the global economic turndown, Meta lost $80 billion of its value in October. The dwindling fortunes forced Zuckerberg to take action.

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"In 2023, we’re going to focus our investments on a small number of high-priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year.

In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organisation than we are today," the Guardian quoted Zuckerberg.

The Wall Street Journal reported that Meta had over 87,000 employees as of September.

Metaverse losses

Reality Labs, a division of Metaverse, recorded a $3.7bn loss in the last three months.

The losses are expected to grow in 2023, but Zuckerberg was optimistic his experimental bets would pay off.

"Over time, these will end up being very important investments for the future of our business,” he said.

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Meta's profit

On Wednesday, October 26, Meta reported that its profit more than halved to $4.4 billion in the third quarter from $9.2 billion a year earlier, and said it plans "significant changes" to bolster efficiency in a tough economic environment.

The social networking giant, which faces stagnating user numbers and cuts in advertising budgets, also said revenue slipped to $27.7 billion from $29 billion a year earlier.

The number of monthly active users on Facebook was up by 2% to 2.96 billion at the end of September.

Twitter about turn on job cuts

At the same time, Twitter is requesting a section of the fired employees to return back to work barely a week after they were sacked.

The company's new boss Elon Musk fired nearly half of the workers on Friday, November 4, as he planned to cut operational costs.

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The company wants a dozen employees to return to work after realising their expertise is significant.

Twitter unveils 'official' label for top accounts

In another story, Briefly News previously reported that Twitter on Wednesday unveiled a new gray "official" label for certain accounts as it revamps the highly influential platform following Elon Musk's buyout.

Esther Crawford, a Twitter products executive, said the new tag would include "government accounts, commercial companies, business partners, major media outlets, publishers and some public figures".

Source: TUKO.co.ke