Silicon Valley Meta Bloodbath

Silicon Valley Meta Bloodbath

The parent company of Facebook, Meta Platforms Inc., is the most recent business in Silicon Valley to make a layoff announcement.

Given the rapidity of the layoffs, several analysts have referred to the extensive job losses as a "bloodbath" in Silicon Valley.

According to sources, Chief Executive Officer Mark Zuckerberg has spoken to executives to prepare them for the possibility. Starting today, affected Meta Platforms Inc. employees will be informed about the job losses. This will affect around 11,000 employees.

While some tech giants are going all out in terms of layoffs, several have indicated a slowdown in hiring as a means of reducing budget spending ahead of a recession.

The layoffs come at a difficult time for Meta, the parent company of Facebook, which gave lackluster fourth-quarter profit projections in late October, alarmed investors and caused its shares to drop over 20%. The third quarter saw a 19% year-over-year increase in Meta's costs and expenses, raising them to $22.1 billion, which has investors worried. In the most recent quarter, the company's overall sales decreased by 4% to $27.71 billion, while operating income fell 46% to $5.66 billion.