The trouble at Facebook parent company Meta continues following recent financial issues. After a rough year, the tech giant is planning to lay off thousands of employees.
After the company’s recent financial report, Meta’s market value was sliced by $80 billion. Following a year of Metaverse losses, investors are losing faith in the social media giant.
In response to the financial disaster, Meta is allegedly ready to fire employees by the thousand. The large-scale layoffs are expected to be the company’s first mass firing since its conception 18 years ago.
According to The Wall Street Journal, Meta has planned for layoffs this Wednesday. Current employees have been informed to cancel any upcoming holidays to prepare for the layoffs.
Over recent months, Meta has been urged by investors to cut back on spending. Specifically, the massive tech conglomerate has been urged to reduce the amount of money being funnelled into Metaverse development.
Investors in the long-running social media giant claimed that CEO Mark Zuckerberg is “tone deaf”. Another investor begged the CEO to rethink the company’s Metaverse strategy and commit to mass layoffs in order to keep profits high.
Over the past two years, Meta’s Metaverse development has stayed in the red. Every quarter, the company loses billions on the virtual world, and that’s continued up until the time of writing.
As it stands, Meta’s current Metaverse simply isn’t popular. While the service, Horizon Worlds, garnered 300,000 users quickly, it’s momentum has staggered. Furthermore, even Meta employees have been chastised for not engaging in the service they’re making.
Mark Zuckerberg does not seem willing to can his Metaverse project. Despite investors wanting the company to give up and focus on its prior strengths, the virtual world will still be chased by the company, for better or for worse. (Mostly worse.)