Brittany Gates

Reporting video games and tech news from an entrepreneur angle

Facebook Layoffs May Surpass Twitter’s Numbers

facebook layoffs
Facebook could see the largest workforce reduction this year as the company prepares to layoff thousands of workers possibly next week.

Facebook layoffs may surpass Twitter’s numbers. The latest rumor about layoffs in the Technology Industry centers around Meta, the parent company of Facebook. According to a new Wall Street Journal article, the company could cut “many thousands” of employees next week.

Here’s Why Facebook Layoffs May Surpass Twitter’s Numbers

The main reason why Facebook layoffs may surpass Twitter’s number because of the number of employees the former has. Facebook currently employs about 87,000. And their workforce ballooned within the last two years. The Wall Street Journal article states the company added 27,000 employees in 2020 and 2021 when the platform saw greater usage due to the Pandemic. And this year the social media company added another 15,000+ employees.

So if the company cuts just 10% of their staff (which is a possibility) then that’s about 8700 employees. That’s double of Twitter’s layoff which was about 3700 employees. Even a 5% reduction in workforce is 4350 employees, still higher than Twitter. I believe this upcoming layoff will feature the highest staff reduction in the entire Technology Industry.

The Reasons For The Layoffs

The main reason for the upcoming job cuts is the company’s declining revenue. This year saw the first time revenue dropped in the company’s history. And revenue is declining because more young people use TikTok than “Boomerbook.” In addition, Apple released the App Tracking Transparency framework which requires developers to request user’s authorization for tracking the user’s device. Since Facebook makes a good portion of their revenue through advertising this move hurts their bottom line. Because users can and are opting out of tracking by the company. Thus, the company cannot serve targeted ads.

Finally, Mark Zuckerberg’s bet on the Metaverse isn’t working out. Since 2021 Meta spent $15 billion on the venture, hoping to entice users into purchasing their VR headsets and hanging out in the Metaverse. And it’s not working. A reasonable CEO would cut their losses and try another initiative to make money and garner more users, but not Mark Zuckerberg. He’s certain the Metaverse will just be as popular as Facebook and will continue to invest in it. However, he’s going to have to cut employees to continue pouring money into it.

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