Meta is the latest tech company to make huge workforce cuts, as Mark Zuckerberg confirms that the company responsible for Instagram, WhatsApp, and Facebook will be slashing 11,000 jobs – around 13% of its workforce – in one of the biggest US layoffs this year.
Facebook founder, Zuckerberg, informed executives in a meeting yesterday (Tuesday 8th November) that since Meta has lost two-thirds of its share value, it is unfortunately necessary to make this intense cut.
Meta isn’t the only tech platform that has cut its number of employees heavily over the recent months, as just this week, we saw the news break that Twitter’s new owner, Elon Musk, will be cutting the platform’s 7,500-strong workforce due to a warning of a massive drop in revenue.
In September, subscription platform Patreon laid off 17% of its staff ahead of the anticipated recession, and online homeware retailer, MADE has also been top of conversation as it enters administration, putting at least 500 jobs at risk.
This response, which is extremely unfortunate and disappointing for those directly affected, is a direct response to a decline in growth for these platforms, contrary to the growth and attraction they gained during the pandemic.
The partnership marketing space hasn’t fallen under the radar during this influx of employment cuts. This summer, we covered the news that major partnership marketing agency and tech platform, impact.com, would be laying off 10% of its workforce.
David A. Yovanno, CEO, and Per Pettersen, Co-Founder of impact.com were very honest about the fact that earlier this year the impact.com leadership team set aggressive hiring and growth targets, to achieve exponential scaling of the company.
In hindsight, it seems the decision made to significantly increase investment in hiring was ‘the wrong choice’, as, in David’s words, they “could not have predicted the full effect of the macroeconomic conditions we are all experiencing right now.”
With even the world’s largest tech companies being affected by the current state of the economy, it seems as though job security is far from guaranteed.