Facebook / Meta Freezes Hiring, Cost Cutting Measures On The Way

Meta

Meta’s stock value declined by almost half, and the company is now putting a freeze on hiring. Revenue growth is not what Facebook’s executives expected, and the company just opened a weird physical Meta store in California. This sounds like the start of an infection that may end the former social media powerhouse.
This week a memo was released outlining Meta’s obstacles and the company’s plans to steer the ship out of the storm. Business Insider published the Meta memo in its entirety. Unfortunately, it’s not looking too good for the social media giant. The company’s CFO, David Wehner, broke the concerns down fairly well, but still managed to cloud things with Corpo-speak:
“… as we look towards the second half, we’re going to adjust those targets in a couple of ways:

  1. Reducing our hiring targets for 2022. This means hiring fewer people than we initially forecast. We’re still working out what this means for each org, but this will affect almost every team in the company. We’re entering into the H2 planning cycle, and this will be an opportunity to reprioritize work to make sure we’re all focused on the most important things and the top priorities for the company. Your org leaders will follow up with more information over the coming days and weeks, but today we’re announcing some changes on the Engineering side — look out for a post in Engineering FYI for details.
  2. Reviewing headcount allocation to make sure it’s aligned to our top company priorities given our modified hiring targets. This will help us resource the projects that we’re prioritizing for the rest of the year. You’ll learn more about this from your functional and org leads over the next couple of weeks.”

Recently, Facebook was rebranded to Meta and this new label was also passed along to the Oculus, turning the VR headset into the oddly named ‘Meta Quest 2.’ It all sounds like a bad parody you’d find in a GTA game. The new name and shiny logo didn’t help the company’s fortunes as financial growth failed to meet expectations. When that happens, cuts are not far behind.
How, exactly, this will affect the Oculus, I mean Meta Quest 2, is not immediately clear. The Metaverse has yet to find its foothold in the mainstream, and other companies have already announced that they’re creating their own virtual spaces. So will there be room for Facebook when the company gets back on its feet?
It’s no secret that Facebook has been shrinking in importance, much like MySpace before it. Aside from buying and selling items via the Facebook marketplace, the allure of using the platform as part of the social media network is not there. From personal experience, dumping money into advertising on Facebook yields little in return as far as clicks are concerned.
[Source: Bloomberg] [Source: Business Insider] [Source: Business Insider]

Mike Phalin

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