What is happening
Facebook’s parent company Meta and Google are looking at ways to cut costs, including reducing staff.
why does it matter
The moves show how companies are preparing for an economic downturn.
Facebook’s Alphabet affiliate Meta and Google are said to be cutting staff as tech giants look to cut costs amid slowing growth.
Citing people familiar with these decisions, The Wall Street Journal mentioned On Wednesday, Meta is looking to cut its costs by at least 10% over the next few months. Meta executives have not used the term layoffs but are trying to cut staff by reorganizing departments and giving workers a certain amount of time to apply to other jobs within the company, according to the report. Google has also asked some employees to apply for new jobs.
Meta and Google’s cost-cutting efforts show how companies, which make money selling ads, are preparing for an economic downturn. It is unclear how many employees have been affected by these moves. Both companies have previously indicated that they are exploring ways to cut costs.
Meta spokesman Dave Arnold referred to statements made by executives during the company’s earnings call in July. At the time, Meta CEO Mark Zuckerberg said the company plans to “steadily reduce employee growth over the next year.” Meta has also reduced its expense routing since the third quarter of last year. The social media giant has invested heavily in virtual and augmented reality as part of its ambitions to create a metaverse, a more inclusive internet where people will be able to socialize, work and play in virtual spaces, but the company doesn’t expect to make a profit from these efforts for years. As of June 30, Meta had 83,553 employees.
Reportedly, Alphabet CEO Sundar Pichai Google employees In July, the company announced that it would slow hiring for the rest of the year and urged employees to be “more entrepreneurial.” “In some cases, it means consolidation where investments overlap and streamline operations. In others, it means stopping deployment and redeploying resources to higher priority areas,” Pichai told employees in an email. As of June 30, Alphabet had 174,014 full-time employees.
Meta and Google are said to have set time limits for how long employees have to find another job internally. The magazine reported that Meta employees have about 30 days and Google employees usually have about 60 days to apply for other jobs at the company if their jobs are cancelled. A Google spokesperson referred to Pichai’s remarks in July about slowing hiring, but said the company remains “focused on engineering and technical staffing and other critical roles” and continues to look for ways to “increase our productivity and make sure we focus on term priorities.”
This time may be longer, however, depending on other factors. Google reportedly told about half of the 100-plus employees in the startup incubator area 120 that they had 90 days to find other jobs at the company, but gave them more time if their project was cancelled.
A Google spokesperson told the newspaper that nearly 95% of employees who expressed an interest in staying with the tech giant found new roles within the deadline. The Alphabet Workers Union did not immediately respond to a request for comment.
Other tech companies have resorted to layoffs. Snap, the parent company of the disappearing messaging app Snapchat, has announced that it will cut about 20% of its staff.
CNET’s Emad Khan contributed to this report.