Is Meta in trouble?

a man standing beside the brown box

Overview

Meta is one of the largest software companies in the world today. Meta is the parent company, which owns multiple products like Facebook, Instagram and WhatsApp. The CEO of Meta is Mark Zuckerberg. Mark Zuckerberg has informed the employees of Meta that there is a deep recession and economic uncertainty lying ahead of us. This justification has been provided to begin a new performance management model. That aims at raising the performance standard of all employees. The hiring targets have been reduced considerably for the current year. One of the highest priority factors that the management is observing and discussing regularly is related to resource utilization, and attrition. Initially there were a lot of plans of hiring huge number of employees. There were multiple projects that Meta was working on and had big plans to deliver. However, currently Meta is closing and sizing down multiple projects. This means there will be smaller teams working and many projects that are not critical, will not be continued. Meta salary hikes and employees promotion are likely to see delay. Subscribe to learn and practice the Meta interview questions on different topics.

Read more: Is Meta in a hiring freeze? »

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Meta Layoff Strategy

The performance management system in Meta has been completely revised to make sure there are more stringent performance measurement parameters. Facebook CEO Mark Zuckerberg has said there are many employees who should not be there. When the CEO of an organization gives a statement like this, it means the company is heavily focused on reducing its employee strength. When the top leader of an organization says such a statement, it also means that this employee reduction goal is one of the top priorities in the company right now. The same work that the employees used to do earlier will no longer be enough to meet the new performance standard. Employees have to work much harder than before to meet the required performance standard in the new Meta performance management model. This is an extremely aggressive step taken by Meta that is sure to affect the work-life balance of many employees. The vision of the company now focuses mainly on its survival instinct, which means they have to focus on their revenue and profitability first and the welfare and overall wellness of its employees later.

Meta Hiring and Layoffs
Meta Hiring and Layoffs

Meta Facing Tough Competition

There will be lack of sufficient funds in Meta for quite a while in the future now and all Meta employees will continue to feel the stress and heat of severe economic downturn. Unless the Meta profitability recovers, employees will be constantly under immense pressure even if the overall United States economy recovers. The interns who are working at Meta has also been informed that their positions might not be converted to full time positions anytime in the near future, which is an extremely rare announcement for a company like Meta. Facebook has not seen an increase in its number of users. Instead, the number of active users of Facebook is seeing a steep decline. There is increasing competition from major, excellent quality apps like TikTok and Snapchat. TikTok has revolutionized the video segment in social media by their content discovery algorithm. The content discovery algorithm is one of the breakthroughs that Meta did not anticipate. TikTok has seriously affected Meta's revenue model. Meta is hoping they can compete with TikTok using the Instagram models feature. However, Meta needs to dramatically upgrade their graphics processing power to do the same amount of machine learning and scanning that TikTok does on its videos. This would mean Meta has to invest heavily in their video segment of social media, but it's difficult with their declining revenues. It is indeed a desperate situation for Meta to revive their future.

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Meta Hiring Challenges

Meta's users are today increasingly conscious about their data privacy. The iPhone software updates have put privacy first This has also affected Meta's revenue advertisement model. Users today prefer less relevant ads than compromising their privacy. But less relevant ads means decline in Meta's revenue and thus intense pressure on the careers of the employees. TikTok is a clear winner today in the social video app segment with a fresh air among all the apps. TikTok provides an excellent experience that Meta will find it hard to compete with Instagram Reels. Meta is still hiring, however, for certain key roles for machine learning and artificial intelligence experts. Certain projects like the Metaverse will keep will continue to be a priority at Meta. If these projects are successful, Meta can come back even stronger than before. Based on the different skills of the employees, they will be reassigned to more critical projects at Meta. Due to the past profitability model, Meta can choose to invest more in riskier ventures that other players cannot. Thus, only time will tell whether Meta will see a complete recovery from its current state, and can resume hiring like before.

Author: Rahul Bhattacharya

Rahul is a journalist with expertise in researching a variety of topics and writing engaging contents. He is also a data analyst and an expert in visualizing business scenarios using data science. Rahul is skilled in a number of programming languages and data analysis tools. When he is not busy writing, Rahul can be found somewhere in the Appalachian trails or in an ethnic restaurant in Chicago.

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