Meta CEO Mark Zuckerberg has plans to cut down on headcount for the first time, which will see an end to “rapid growth” for the social media giant, Bloomberg wrote.
He said the company plans to freeze hiring and restructure some teams, which will help cut down on some expenses and “realign priorities,” with the company likely to be smaller in 2023, he said.
He announced this plan during a weekly Q&A session with employees, saying the company plans to cut budgets across most teams — even those that are growing. Individual teams will also be sorting out headcount changes. This could constitute not filling roles after employees depart, or shifting people to other teams — or working to manage out people who “aren’t succeeding.”
“I had hoped the economy would have more clearly stabilized by now,” Zuckerberg said. “But from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively.”
These remarks could be the most clear admissions yet that Meta’s ad revenue growth has slowed amid the higher competition for user attention. There have been numerous reasons for the adverse conditions: economic pressures, cuts in the ad business as Apple adds new privacy restrictions, and TikTok’s influence cutting in on a space that used to belong to Meta.
Meta also said earlier in the year that it would be slowing hiring for management, and stopped giving full-time jobs to summer interns. Zuckerberg said the newest freeze was to help make sure the company was “not adding people to teams where we don’t expect to have roles next year.”
Meta will also be integrating WhatsApp with Salesforce, adding new ways businesses can chat with customers.
Read more: Meta Integrates WhatsApp, Salesforce to Let Merchants Chat With Consumers
PYMNTS said this will let the companies add more options to talk and manage communications. WhatsApp has said its goal is to add “faster, richer” interactions which will make it easier for businesses to get running on the service.
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