Meta, the parent company of Facebook, is adjusting its hiring plans as CEO Mark Zuckerberg cautions about an upcoming economic downturn. In response to the challenging environment and the impact of privacy changes on advertising, the social media giant intends to hire up to 40% fewer engineers compared to its initial projections.
Zuckerberg addressed the changes during a recent meeting with employees, stating, “If I had to make a bet, I’d say that this might be one of the worst downturns we’ve seen in recent history” (as reported by Reuters, which obtained a leaked recording of the event). Instead of hiring around 10,000 engineers as originally planned, Meta now aims to hire between 6,000 and 7,000.
This sentiment echoes Elon Musk’s similar concerns, as the tech entrepreneur is currently reducing Tesla’s salaried workforce by 3,500 due to a pessimistic outlook on the economy.
Zuckerberg also mentioned that departing employees may not be replaced, and managers will be encouraged to identify underperforming staff members. He voiced his belief that some individuals may realize that Meta is not the right fit for them when faced with higher expectations and more ambitious goals.
In recent years, Meta has experienced significant growth, expanding its workforce from 17,048 employees in 2016 to 71,970 in 2021. However, the company encountered challenges earlier this year, with a decline in daily users and slower revenue growth, largely attributed to increased competition from TikTok and the impact of privacy controls on Apple iPhones.
Prior to this announcement, Meta had already halted hiring in certain departments. These changes align with Meta’s efforts to refocus its strategy on the “metaverse,” virtual reality-based online worlds. Unfortunately, the company’s value has plummeted by 52% this year, reflecting ongoing challenges. Additionally, many tech companies, including Tesla, Netflix, and Coinbase, have made similar job cuts amidst a broader economic downturn.
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