The social media bubble has begun to burst. According to the Wall Street Journal, META is preparing to lay off thousands of employees for the first time in 18 years as a result of its dismal financial results. The social network founded by Mark Zuckerberg will follow in the footsteps of Twitter, which will lay off at least half of its staff.
2022 will go down in history due to the great fall of Facebook on the stock market and the slippage of the big technology companies. In eleven months amazon has dropped 46% on the stock market, Google has lost 40% of its value, microsoft 34%, Manzana 24%, but the great victim has been Facebook with a collapse of 74% so far this year causing the greatest loss of wealth of a person in history.
The latest results of the social network show, on the one hand, a stagnation in your accounts. It has ceased to be a growth company to become a cash-burning machine. In the development of the metaverse alone, the company has squandered close to 10,000 million dollars. The problem is that neither the market believes the new virtual world devised by Mark, nor does it seem that in the short term human beings are going to buy augmented reality glasses to experiment in the new worlds. META’s own founder points out that it will take at least a decade to see the results of such investments.
The rapid growth of TikTok does not help either, and at the user level, Instagram seems to have stagnated while WhatsApp continues without a clear monetization plan. The result has been the punishment in the stock market that has caused Zuckerberg to have 100,000 million dollars less in his fortune.
Mass layoffs
According to the economic newspaper, this Wednesday we will learn about the adjustment plan for the workforce, which will surely be well received by the markets. All analysts consider that META needs changes and sources familiar with the company’s plans indicate that in 2023 the workforce will be smaller.
Elon Musk has also launched a massive layoff plan that will slim down the company by at least 50%. According to the founder of Tesla and owner of the little bird social network, Twitter loses 4 million dollars a day and needs to adjust its staff to be viable. Everything also indicates that many countries will lose their local office by centralizing the management of the company in specific areas. For this reason, it is more than likely that the 30 employees that Twitter has in Spain will end up being fired. According to Musk himself, the compensation that US employees will receive will be three months’ salary, twice the minimum required. Nothing to do with Spain where compensation will be very important for older employees.
