Even the Silicon Valley companies that are accustomed to making large profits are having a hard time.
The CEO of the massive social media platform Meta is skeptical about the economic situation and is focusing on making his business profitable.
The Nasdaq index, which is overtaken by technology businesses, has been particularly rocked by the recent turmoil in the financial markets. Investors selling off their holdings in risky assets due to recession fears. This notably hurts the technology industry, which thrives on promises of upcoming goods and services.
Big Tech is not exempt, particularly as they are multinational corporations with operations in numerous nations, therefore the global economic slowdown must also affect them. This is the situation with Facebook as well as Instagram’s parent company, Meta Platforms (META) – Get Meta Platforms Inc. Report.
The company is one of the major players in online marketing; in terms of market share, Meta only continues to lag Google (GOOGL) – Get Alphabet Inc. Report. Experts predict that businesses and advertisers will have to cut back on their advertisements and marketing budgets as a result of the economic slowdown or, worse, the downturn. This should logically have an impact on companies like Meta and Google, for instance.
On June 30, at the customary weekly Q&A session, CEO Mark Zuckerberg warned employees to prepare for “one of the biggest recessions that we ’ve probably experienced in recent history.”
As a result, Meta will emphasize its cost-cutting strategy. In contrast to an early projection of 10,000 new hires, the company only aims to employ around 6,000 to 7,000 young engineers in 2022, according to Reuters.
According to The Street, The social media firm planned to stop or in certain circumstances slow hiring for the majority of mid-to senior-level posts, a source revealed in May. The objective, according to the source, was to realign hiring targets with pace and market estimates.