Facebook’s Meta to Freeze Hiring, Prompts Fears of Layoffs

After the Facebook parent company announced on Thursday it would freeze hiring and further restructure amid an uncertain macroeconomic situation, Meta employees have also been warned of potential layoffs.

During a weekly Q&A session, Chief Executive Mark Zuckerberg told employees that after a decade of explosive growth, the company would reduce budgets across most teams, including those that it was recently investing in.

Meta has recently thrown a lot of weight behind VR and creating its own metaverse and was also scrambling to build out short-form video products so it can compete with TikTok.

The company is also planning to trim down but noted individual teams will have to resolve how to handle headcount changes. Although the social media company has already selectively paused hiring within certain organizations in the company, the universal hiring freeze marks a new era.

Back in May, Meta had confirmed hiring freezes in broad terms without reporting exact figures and had announced in June it’ll cut plans to hire engineers by at least 30 percent this year.

Later in July, Zuckerberg signaled that the company was in for leaner times and would slow hiring to prepare, noting that they were approaching one of the worst downturns in recent history.

As advertisers trim spending to prepare for a looming recession, several tech companies have been forced to slash headcount in recent months.

Citing uncertain economic times, Tech giants Apple, Twitter, and Amazon all recently announced hiring freezes while crypto exchange site Coinbase and streaming service Netflix announced the layoffs of hundreds of employees earlier this year.

Global economic growth slows due to higher interest rates, skyrocketing inflation, and an energy crisis in Europe, prompting tech companies, crypto exchanges, and financial firms to cut jobs and slow hiring.

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