The American international technological corporation Meta Platforms, Inc., doing business as Meta and formerly known as Facebook, Inc. and The Facebook, Inc., is situated in Menlo Park, California. The firm, among other things, is the owner of Facebook, Instagram, and WhatsApp. One of the most valuable corporations in the world is Meta. Along with Alphabet, Amazon, Apple, and Microsoft, it is regarded as one of the Big Five American technological giants.
Facebook, Messenger, Facebook Watch, and Meta Portal are among the goods and services offered by Meta. Additionally, it owns a 9.99% share in Jio Platforms and has bought Oculus, Giphy, Mapillary, Customer, Precise, and Oculus. The corporation sold advertising to bring in 97.5% of its income in 2021.
To “reflect its concentration on constructing the metaverse,” the parent company of Facebook changed its name from Facebook, Inc. to Meta Platforms, Inc. in October 2021. The integrated ecosystem that connects all of the company’s goods and services is referred to by Meta as the “metaverse.” The corporation had a market value of $364.64 billion in September 2022, but shares had dropped 60.02% in the previous year as a result of increased competition from TikTok and Apple’s iOS privacy reforms.
Many IT businesses are putting the brakes on hiring as a result of concerns about an impending recession as the global economic slump deepens.
While cutting payroll expenses would appear to be a simple approach to cutting expenditures at the moment, the employment market is still in flux, and data indicates that employees are just as worried about the economy as their employers.
As a result, 60% of US job searchers claim to feel increased pressure to obtain employment right now before market circumstances deteriorate. This might result in a talent drain for businesses that have opted to halt employing that they are powerless to stop.
Why did Techies freeze recruitments?
The first businesses to declare a halt in recruiting were Google and Microsoft, who were swiftly followed by Meta, Apple, and many more.
According to The Verge, Google informed workers in a message that it will “slow down the pace of recruiting for the rest of the year.” Exactly one week later. According to The Information, Google’s senior vice president Prabhakar Raghavan informed colleagues via email that no new hires will be made during the next two weeks. Existing employment offers are allegedly unaffected by the freeze, but no further offers will be made to those whose applications are still processing.
Microsoft has also disclosed that it will stop posting any new job openings and will scale down hiring for the foreseeable future. According to a Bloomberg article, the company’s cloud and security divisions will be most impacted by the hiring slowdown. Microsoft made the news two months after announcing that it will reduce employment across its Teams, Office, and Windows software departments.
Tech firms other than Google and Microsoft have begun to be more selective in their recruiting. Twitter cut off 30% of its talent acquisition staff earlier this month after first imposing a hiring freeze earlier this year.
META joined the race
In light of the hazy macroeconomic environment, Facebook-parent Meta Platforms will halt recruiting and continue restructuring, according to a statement from CEO Mark Zuckerberg to staff, as reported by Bloomberg News on Thursday.
As marketers cut spending to get ready for an impending recession, some computer businesses have been compelled to reduce personnel in recent months.
According to a Reuters article from June, the social media business has reduced its intentions to employ engineers by at least 30% this year.
Additionally, according to the story, Zuckerberg indicated on Thursday that Meta will cut funding for the majority of teams and that each team would have to decide how to manage headcount adjustments.
Meta chose not to respond to the Bloomberg article. In the second-quarter results call, the business mentioned Zuckerberg’s warning about a drop in headcount over the following year.
Even though the employment market has fully recovered since the epidemic, the next recession is expected to present job searchers with a whole new set of difficulties. Although the hiring freezes at tech companies have not yet resulted in widespread layoffs, those who are still employed will still have to contend with stagnant wages, pay increases that are below inflation, and increased commuting costs because of skyrocketing gas prices as the boom times appear to be coming to an end.
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