Facebook’s parent company Meta is to begin mass layoffs as early as this week as the company collapses amid plunging stock values and dismal earnings.
Once the hottest company in Silicon Valley, Meta has seen its share prices plummet over the past year.
As Mark Zuckerberg’s Big Tech corporation has continued to show slowing growth and falling advertising revenue, Meta has seen a staggering 73% wiped from its value in just one year.
Meanwhile, Meta will begin large-scale layoffs this week, according to the Wall Street Journal.
The layoffs could start as soon as Wednesday.
Thousands of Meta’s 87,000 employees are now on the chopping block.
The Wall Street Journal reported:
Meta is planning to begin large-scale layoffs this week, according to people familiar with the matter, in what could be the largest round in a recent spate of tech job cuts after the industry’s rapid growth during the pandemic.
The layoffs are expected to affect many thousands of employees and an announcement is planned to come as soon as Wednesday, according to the people.
Meta reported more than 87,000 employees at the end of September.
Company officials already told employees to cancel nonessential travel beginning this week, the people said.
Meta’s shares were down another 24% a couple of weeks ago on a weak Q4 forecast and earnings collapse.
The crumbling value of Meta has also caused Mark Zuckerberg’s fortune to take a huge hit.
“Mark Zuckerberg’s fortune plunged by $11 billion after his Meta Platforms Inc. reported a second-straight quarter of disappointing earnings, bringing his total wealth loss to more than $100 billion in just 13 months.” Bloomberg News reported.
Meta’s stock is down more than 73% over the year and has lost $800 billion of its market cap, CNBC reported.
Facebook fell from a 52-week high of $353 per share to $92 per share on Wednesday.
Last summer, Facebook’s market capitalization was nearly $1 trillion dollars.
Now it is closer to $245 billion.