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How many employees will Meta’s CEO Mark Zuckerberg have to layoff due to poor results?

Tech giants Facebook’s parent organization, Meta, is predicted to release a large number of employees due to economic troubles and poor performance

The Meta Platforms Inc. booth during the Hong Kong Fintech Week in Hong Kong, China, on Monday, Nov. 1, 2022. The conference runs through Nov. 4. Photographer: Paul Yeung/Bloomberg via Getty Images

According to a report by The Wall Street Journal, the social media company may announce on Wednesday that the disastrous third quarter of this fiscal year will likely impact thousands of staffers’ labor situations.

In a lagging third quarter, Meta reported a 52 percent year-over-year (YoY) decline in its net profit, bringing it to $4.4 billion. The company’s stock prices took a significant hit following this disappointing result, dropping by 25 percent in a single day. Its market value is also down to $600 billion over the past year.

Meta shares have plummeted 73% this year, falling to their lowest since early 2016, and the social media giant is now the worst performer in the S&P 500 in 2022.

Already In June 2022, the Facebook executive board had decided to cut plans to hire engineers by 30 percent.

Mark Zuckerberg’s response to the crisis

Meta’s chief executive officer Mark Zuckerberg talked about a possible slowdown in the hiring process and a rationalization in the employee count.

In 2023, we’re going to focus our investments on a small number of high-priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today,” Zuckerberg said on the last earnings call in October.

In the past week, after successfully taking over Twitter, Tesla CEO Elon Musk laid off 7,500 employees, and Silicon Valley firms Stripe and Lyft also announced large-scale layoffs. As a part of realignment tech-giant, Microsoft also fired 1 percent of its 1,80,000-strong workforce.