Meta Platforms, Facebook’s parent company is reportedly planning to stop hiring 30% of new engineers as founder Mark Zuckerberg is warning his employees of an economic downturn.
“If I had to bet, I’d say that this might be one of the worst downturns that we’ve seen in recent history,” Zuckerberg said during a weekly employee session that Reuters obtained the audio of. Meta was initially planning on hiring roughly 10,000 new engineers throughout the year but now has to cut that number down by 30% and make it work with just about 6,000-7,000 new employees, according to Zuckerberg.
The company will be allegedly leaving multiple positions unfulfilled and will be looking to “turning up the heat” on performance management and fire employees who fail to meet the new targets according to the leaked audio. “Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said in this session.
“Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn’t for you, and that self-selection is OK with me,” Zuckerberg added. The company’s Chief Product Officer, Chris Cox concurred with Zuckerberg’s sentiment.
“I have to underscore that we are in serious times here and the headwinds are fierce. We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets,” Cox wrote in a memo that was also obtained by Reuters.
According to business reports, Facebook has lost around $500 billion since rebranding to Meta and with the incoming recession, this number will only get worse as per expert predictions.
The U.S. economy has seen a drastic downfall under the leadership of Joe Biden. A historic low decline in the GDP, an annual rate of 1.4% in the first quarter of 2022 alone, and inflation reaching new high levels, not seen in 40 years.
Facebook is not the only company experiencing and predicting challenging times ahead of the recession. In an email to Tesla executives recently, founder Elon Musk reportedly expressed a “super bad feeling” about the economy and his intentions to cut around 10% of the company’s workforce.
JPMorgan Chase CEO Jamie Dimon also told his investors that his company will be “very conservative with its balance sheet as a result of Federal Reserve’s plan to raise interest” and because of the uncertainty of the war in Ukraine. Dimon has also warned people of an “economic hurricane.”
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