Job cuts in tech companies have accelerated, nearing levels witnessed in the early stages of the Covid-19 pandemic, as tech companies both large and small curtail ambitions and brace for hard times ahead. After Twitter, now Meta announced through a post that the Company is laying off 13 percent of Meta's staff, which comes to roughly 11,000 employees.
In recent weeks, Twitter has experienced many big changes after Elon Musk acquired the company. He has fired many big position holders including former CEO Parag Aggarwal and following the trend on Wednesday Meta chief Mark Zuckerberg announced Meta layoffs of nearly 11k employees. A spate of tech companies has said they will cease hiring or cut jobs outright in the face of sluggish consumer spending, spiralling inflation, and a strong dollar undercutting sales overseas. Leaders in the industry, a major driver of the global economy for the last decade, feel that they are running in a higher-risk environment, making them less willing to invest to grow their businesses just like in past years.
Meta Platforms Inc., the parent company of Facebook and Instagram, is the radical decision to cut thousands of workers this week, the Wall Street Journal reported. It can be clearly observed that the Meta layoffs follow Elon Musk's agreement to slash Twitter Inc.'s staff to half last week after acquiring the social network. On the other hand, many big tech companies such as Apple Inc., Amazon.com Inc., and Alphabet Inc. have all either slowed or paused hiring.
Investments in more speculative technology will receive greater scrutiny, mentioned Jo-Ellen Pozner, an assistant professor of management at Santa Clara University's Leavey School of Business. "For the big companies, it's reasonable to assume that the rising tide that has been floating their boats for the past 15 years is just now a lot choppier," Pozner added. He continued saying that "They clearly need to trim and to rationalize projects that they just haven't had to do for a decade and a half because the environment was so munificent."
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