Meta to Freeze Hiring to Cut Costs Following First Quarterly Revenue Drop, Plunging Profit: Report

Meta CEO Mark Zuckerberg reportedly announced the plan to pause hiring at the company during a weekly hands-on meeting.

Meta to Freeze Hiring to Cut Costs Following First Quarterly Revenue Drop, Plunging Profit: Report

Meta CEO Mark Zuckerberg reportedly told employees that the company had reduced its hiring targets

Highlights
  • Meta had long delivered seemingly endless upward growth
  • Meta reported early this year its first decline in global daily users
  • Big tech platforms have been suffering from the economic climate

Facebook-parent Meta put out word to employees on Thursday that it will freeze hiring to cut costs as it endures tough economic times, The Wall Street Journal reported.

Meta chief Mark Zuckerberg revealed a planned pause in hiring during a weekly all-hands meeting, the Journal reported, saying the move came as the social media titan planned to cut expenses by at least 10 percent.

Meta declined to comment on the report, instead referring AFP to remarks Zuckerberg made in July when the company reported its first quarterly revenue drop and a plunging profit.

Zuckerberg said during an earnings call that teams would shrink in order to "reallocate our energy" as it battled a turbulent economy and the rising phenomenon of TikTok.

Meta had long delivered seemingly endless upward growth, but reported early this year its first decline in global daily users.

"This is a period that demands more intensity, and I expect us to get more done with fewer resources," Zuckerberg told analysts during an earnings call.

Big tech platforms have been suffering from the economic climate, which is forcing advertisers to cut back on marketing budgets, and Apple's data privacy changes, which have reduced leeway for ad personalisation.

Snap and e-cozmmerce colossus Amazon are among tech firms that have announced workforce cuts this year.

In July, Reuters reported that Meta had cut plans to hire engineers by at least 30 percent this year. At the time Meta CEO Mark Zuckerberg reportedly told employees that the company had reduced its hiring targets, as he warned them to brace for a deep economic downturn. Meta has reduced its target for hiring engineers in 2022 to around 6,000-7,000, down from an initial plan to hire about 10,000 new engineers, Zuckerberg said.


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