Mark Zuckerberg is reportedly telling Meta employees he has no plans to lay off — even as the company has vowed to tighten its belt with its stock down 43% so far this year .
After the parent company of Facebook and Instagram established freezes for multiple roles in recent weeks, panicked “metamates” are poised for potential layoffs. But according to a recording obtained by The Verge, Zuckerberg sought to allay his fears at an all-arms meeting last week.
“I can’t sit here and make a lasting promise that as things change, we won’t have to rethink that,” Zuckerberg said of the possible layoffs. “But what I can tell you is that where we sit today, we don’t expect that we have to do that. And instead, basically what we’re doing is we’re going to take the growth to that level.” What we think is going to be manageable over time.”
According to the report, Zuckerberg reassured employees that the company is “in a very strong position and has a very healthy business” and is “still growing rapidly”.
“As we noted in our most recent earnings release, we are evaluating key priorities across the company and putting energy behind them, especially as they relate to our core business and reality,” META spokesperson Joe Osborne said in a statement Thursday. Labs are related.”
The news comes as privacy changes by Apple and Google take a multibillion-dollar cut from Meta’s advertising business — and the company battles an ascendant TikTok for young people’s eyes.
Some investors are also wary of Zuckerberg’s big bet on the metaverse, which lost $10 billion in 2021. Zuckerberg argues that the initiative will pay off in the long run.
Meta shares were trading at $191.38 early Friday — down 11.5% from the previous month and 43.2% from the start of 2022. By comparison, the tech-heavy Nasdaq Composite Index is down 27.9% so far this year.
In an apparent effort to cut costs, Meta said earlier in May that it was slowing or completely freezing work for most of its mid- or senior-level positions. The company has also stopped hiring for some low-end engineering jobs.
According to the Verge, divisions hit with the freeze on engineering appointments include Facebook’s dating, gaming and Facebook Messenger for kids teams — as well as the company’s shopping, video and audio calls divisions.
Other tech firms, including Netflix, Peloton, Robinhood, Carvana and Gopuff, have laid off employees in recent months.