Following the economic shutdown of COVID-19, the turmoil in Ukraine and climate change concerns have significantly affected the sluggish state of the world economy. This adverse situation is having a negative impact on global job creation. All this gives rise to a situation where even a small report of layoffs in large corporations causes negative stir in the business world.
According to a report, as a result of sluggish growth, both tech giants Google and Facebook’s parent company Meta, are in the process of laying off employees to reduce costs. wall street journal ,WSJ,
The outlet further said that Meta expects to reduce its expenses by at least 10 percent in the coming months by reorganizing departments and giving employees a chance to apply for other roles internally.
magazine He further said that all these measures will reduce employment. It is expected that cost-cutting will begin in the next few months.
In July, Meta Platforms Inc. issued a disappointing forecast after reporting its first quarterly decline in revenue, weighing down on recession fears and competitive pressures on digital ad sales.
The company said it expects third-quarter revenue to decline between $26 billion and $28.5 billion, making it the second consecutive year-over-year decline. Analysts were expecting $30.52 billion.
WSJ Further said that Google has also asked some employees to look for internal roles to remain in the company. Last week, Google told nearly half of the more than 100 employees at the company’s startup incubator ‘Area 120’ that they would need to find a new internal role within 90 days.
The cost-cutting measures taken by Google and Meta show how these ad-based tech giants are preparing for a slowdown in the economy.
Both the companies had earlier indicated that they are looking at cost-cutting measures.
Alphabet CEO Sundar Pichai reportedly informed Google staff members in July that the company would reduce hiring for the rest of the year.