The Facebook Parent Meta, Google to Cut Costs and Staff, Report Says 2022

Facebook Parent Meta, Google to Cut Costs and Staff, Report Says

What’s going
Google and the Facebook’s parent firm Meta are looking at ways to reduce expenses, potentially by laying off employees.

What’s at stake
The actions demonstrate how the businesses are preparing for a downturn in the economy.

Both Google and Meta, the parent company of Facebook, are allegedly laying off employees as the internet titans try to reduce expenses in the face of slowing growth.

The Wall Street Journal reported on Wednesday that Meta is seeking to reduce its expenditures by at least 10% within the upcoming several months, citing persons familiar with these choices. According to the article, although Meta officials have not used the phrase “layoffs,” they are attempting to reduce personnel by rearranging divisions and allowing employees a certain amount of time to apply for other positions inside the firm. Additionally, Google asked certain employees to apply for new positions.

The cost-cutting measures taken by Google and Meta reveal how these ad-based businesses are preparing for a downturn in the economy. How many employees have been impacted by these changes is unknown. Both businesses have previously hinted that they were looking into cost-cutting measures.

gradually limit personnel growth over the following year

The comments made by management during the company’s earnings call in July were cited by Meta spokesperson Dave Arnold. At the time, Mark Zuckerberg, CEO of Meta, stated that the business intended to “gradually limit personnel growth over the following year.” Since the third quarter of last year, Meta has likewise been lowering its spending projections. In order to build the metaverse, a more immersive internet where people will be able to socialise, work, and play in virtual spaces, the social media behemoth has been heavily investing in virtual reality and augmented reality. However, the company doesn’t expect to see a return on these investments for many years. Meta has 83,553 workers as of June 30.

Meta and Google reportedly set time limits

According to reports, Alphabet CEO Sundar Pichai informed Google staff in July that the business will suspend recruiting for the remainder of the year and encouraged staff to be “more entrepreneurial.” “That may entail simplifying procedures and combining investments where they overlap. Other times, that entails stopping deployment and redeploying resources to regions with a higher priority “Pichai informed staff members through email. Alphabet has 174,014 full-time workers as of June 30.

The Facebook Parent Meta, Google to Cut Costs and Staff, Report Says 2022

Employees apparently have internal job-search time constraints that are determined by Meta and Google. According to the Journal, if their positions were abolished, Meta workers would have approximately 30 days and Google employees would normally have around 60 days to seek for new positions inside the organisation.

However, based on additional conditions, that period of time may be longer. About 50 of the more than 100 workers at Google’s business incubator Area 120 were allegedly given 90 days to find new positions there, but were given additional time if their project was terminated.

Requests for response from Google and the Alphabet Workers Union were not immediately entertained. According to a Google representative, approximately 95% of employees who expressed a desire to remain with the internet giant did so within the allotted period.

There have been layoffs at other IT businesses. The parent firm of the programme Snapchat, which lets messages vanish, declared it will lay off around 20% of its workforce.