Hiring freeze, very tight budget: winter promises to be icy at a Meta without gas

Pessimism is in order on the side of Menlo Park (California), because the next few months promise to be particularly difficult. After announcing at the end of July a quarterly turnover down for the first time in its history, Meta, the parent company of Facebook, was logically under pressure.

During a meeting with his collaborators on Thursday, September 29, Meta boss Mark Zuckerberg decided to take action, revealing a hiring freeze and measures to reduce expenses, according to the wall street journal who cites sources familiar with the matter.

At the same time, Lori Goler, Director of Human Resources, informed employees that the 2023 budget will be “very tight”. She also indicated that vacant positions will not be systematically replaced and that internal mobility is now suspended, thus confirming the implementation of an austerity cure. Last week the wall street journal had previously revealed that the company planned to cut expenses by 10%.


Facebook, the essential mobile application to access your account and keep in touch with your friends from your smartphone.

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    Facebook Inc.
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An austerity cure that has been taking shape for a few months

These announcements are not a surprise, while the giant had decided to slow down its recruitment rate from May, according to CNBC. Meta then cited the war in Ukraine and Apple’s privacy changes as business challenges for the group.

Also in May, Reuters had revealed that Meta was preparing budget cuts for its division dedicated to virtual reality and the metaverse. Called Reality Labs, it is particularly cash-intensive, Mark Zuckerberg having set himself the objective of welcoming a billion people by 2030 in the metaverse, a horizon considered to become profitable. Alas, the road is still particularly long and winding…

For the time being, the urgency would therefore be to stop the bleeding. And for good reason, the market capitalization of Meta has been in free fall since the beginning of the year. After losing users for the first time in the last quarter of 2021, the firm was heavily sanctioned by Wall Street with more than 200 billion dollars in valuation evaporated in a few hours. Since its peak in September 2021, the Menlo Park group has lost nearly $700 billion on the stock market.

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