Meta Platforms laid off more than 11 thousand people

It became known that the Meta Platforms company underwent massive layoffs. As a result, more than 11 thousand people were fired. About 13% of the employees working in Meta Platforms got under dismissal.

The reasons:

– The company decided to cut employee costs due to poor financial reports for several quarters in a row. Revenue and net profit at Meta Platforms are falling due to several reasons: the economic downturn, the slowdown in the online advertising market, the new Apple privacy policy

– Due to falling revenues, many other US technology companies have started laying off employees or suspended hiring.

– Tech tech giants Apple, Amazon and Alphabet have slowed or suspended recruitment.

– Salesforce laid off more than 100 employees on Tuesday November 8, 2022.

– Snap (owner of the popular Snapchat messenger) has cut about 20% of its employees.

– Also in the company Twitter there were massive layoffs. After Elon Musk acquired the social network Twitter, it was decided to fire about half of the employees.

What’s next for the American economy?

Hard times are coming for the US economy, as the situation will only get worse in the near future. Analysts believe there will be more cuts. It is likely that in the coming months we will see an increase in unemployment in the US, which will exceed 4%. Against this background, the US Federal Reserve may slow down the increase in interest rates to give financial markets a bit to grow. Of course, rising unemployment will affect the fall in demand, which means that we are waiting for bad financial reports.