Objective – the parent company of Facebook, Instagram, Messenger and WhatsApp– started this Wednesday its latest batch of layoffs which is affecting the technical departments.
In mid-March, the company headed by Mark Zuckerberg he announced that he would cut more 10,000 jobs in the coming months – on top of the 11,000 layoffs announced in 2022 – and will abandon plans to fill around 5,000 vacancies it had opened up.
Employees of technical departments such as user experience, software engineering, graphics programming and other functions announced on the social network. LinkedIn that the company had fired them this Wednesday morning.
“This morning I woke up to the unfortunate news that I was one the many fired today by Meta‘ he wrote on LinkedIn Teresa Jimenezwho was a business program manager at Facebook, where he worked for almost 3 years.
When Zuckerberg announced this new round of layoffs, he said it was going to be “tough” and there was no “environment”
In 2022, Meta has seen its profits plummet to 41% in the year, up to $23.2 billion, with a small decrease in its billing and a significant increase in costs.
Like other technology companies, it has been affected by the inflationthe weakness of the advertising market, the increase in competitors and the normalization of the demand for digital leisure, which has increased extraordinarily after the outbreak of the pandemic.
Disney also chooses the staff
The layoffs extend to various sectors. The Walt Disney Company plans to cut hundreds of jobs next week, including 15% of all its employees in the entertainment division, as reported by sources close to the company to the Bloomberg agency.
The layoffs will affect crew, film, distribution, theme park and corporate positions, affecting all regions where that Disney manages.
The restructuring will be announced in the coming days, and some of the affected workers will be notified starting next Monday.
If carried out, it will be the second round of layoffs for Disney, which already cut 7,000 positions from its more than 220,000 positions last February, as part of a strategy to save US$5.5 billion in annual costs which was accompanied by a restructuring of the company into three divisions: entertainment, ESPN sports content; and theme parks, shopping and cruises.
The entertainment industry has been particularly hard hit in recent months, in a context of global economic slowdown.
The market – and shareholders – are increasingly looking at companies’ costs rather than at the number of subscribers they add to their own streaming platforms.
It is precisely that streaming platforms – with exceptions such as Netflix, which bases its operations entirely on them – still report losses to companies.
In the case of Disney, its platforms (Disney+, Star+, ESPN+ and Hulu) reported a red that reached $1,050 million, double the amount in 2021.
In addition to the entertainment sector, the change in the economic scenario affects technology companies, whose sector had experienced exponential growth during the pandemic which led it, in some cases, to overvalue their projections.
Source: Clarin
Linda Price is a tech expert at News Rebeat. With a deep understanding of the latest developments in the world of technology and a passion for innovation, Linda provides insightful and informative coverage of the cutting-edge advancements shaping our world.