Google And Meta Plans To Save Costs By Laying Off Staff – Report.
As a result of snake speed growth, Google and Facebook, parent company Meta, both tech giants, are in the process to lay off workers to reduce costs, according to a report in the Wall Street Journal (WSJ).
The Wall Street Journal also said that Meta hopes to cut down its expenses by at least 10 percent in the coming months by reorganizing departments and giving employees opportunities to apply for other roles internally.
The Journal further said that all the measures planned, especially the cost-cutting measures will begin in the next few months which may lead to a reduction in employment.
In July, Meta Platforms Inc. had issued a gloomy forecast after recording its first-ever quarterly drop in revenue, with recession fears and competitive pressures weighing on its digital ad sales. In fact, both companies have previously hinted that they were looking into taking measures that would reduce operational costs.
The company said it expects third-quarter revenue to fall to $26 billion and $28.5 billion, which would make it a second year-over-year drop in a row. Analysts were expecting $30.52 billion.
WSJ added, that Google has also asked some employees to look for other internal roles if they wish to remain at the company. Last week, Google told roughly half of the more than 100 employees at the company’s startup incubator ‘Area 120’ they would need to find a new internal role within 90 days.
The cost-cutting measures taken by Google and Meta reveal how these ad-based tech giants are preparing for a downturn in the economy.
Sundar Pichai, the CEO of Alphabet, reportedly informed Google staff members in July that the company would reduce hiring for the rest of the year.
Source | Choc News
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