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Meta significantly reduces hiring plans and prepares for "severe" headwinds

(Reuters)Facebook owner MetaPlatforms Inc (META) said at least 30 this year. %, CEO Mark Zuckerberg said Thursday warning employees to prepare for a serious recession.

"If you had to make a bet, this could be one of the worst depressions you've seen in recent history," Zuckerberg told Weekly Employee Q&. I told the workers. A session in which Reuters heard the voice.

Meta has lowered its 2022 engineer recruitment target to approximately 6,000-7,000. This is down from the original plan to hire about 10,000 new engineers, Zuckerberg said.

Meta roughly confirmed the suspension of employment last month, but no exact figures have been reported so far.

In addition to reducing employment, the company has responded to reduced performance management and "raising heat" to eliminate staff who are unable to meet their more aggressive goals. He said he had left the position unfilled.

"In reality, there are a lot of people in the company who shouldn't be here," Zuckerberg said.

"Some of my hopes are those who decide that this place isn't for them by raising expectations, setting more positive goals, and raising a little bit of heat. It may be, and that self-selection is okay for me. "

According to an internal note seen by Reuters on Thursday, social media and technology companies are preparing for the second half of this year to deal with macroeconomic pressure and the impact of data privacy on the advertising business. We are.

The company needs to "prioritize more ruthlessly" and "run a slimmer, mean, better executive team," notes Chief Product Officer Chris Cox. I am writing in. } A.

"We are in a serious time here and we need to emphasize that the headwinds are strong. Teams should not expect a large influx of new engineers, slow growth You have to do it perfectly in your environment. Budget, "cox wrote.

This memo is intended to build on the challenges we are facing and the opportunities we are facing, based on what we have already publicly stated in our earnings and address them. We are devoting more energy to this, "said a Meta spokeswoman. He said in a statement.

Guidance is the latest rough forecast from meta-executives who have already worked to reduce costs for most of the company this year in the face of slowing ad sales and user growth.

The fall in meta stock prices was more serious than that of competitor Apple, but in anticipation of a possible recession in the United States, technology companies have shrunk their ambitions entirely ({36). } AAPL (AAPL)) and Google (GOOGL (GOOGL)).

The world's largest social media company has lost about half of its market value this year after Meta reports that the daily active users of its flagship Facebook app experienced a quarterly decline for the first time. rice field.

The impetus for that rigor arises at tricky times, in line with two main strategic points. One is to recreate social media products with a focus on "discovery" to overcome the competition with the short video app TikTok. An expensive long-term bet on enhanced virtual reality technology.

In his memo, Meta will increase the number of graphics processing units (GPUs) in the data center by the end of the year to support "discovery" pushes that require additional computing power. He said he needed to increase it by a factor of five. Artificial intelligence for displaying popular posts from Facebook and across Instagram in user feeds.

Meta's interest in Reels, a Tik Tok-style short video product, is growing rapidly, and users are doubling the amount of time they spend on Reels both in the United States and around the world, Cox said. ..

He added that about 80% of growth since March came from Facebook.

User engagement with Lille could provide an important route to boost revenue, he added, and it's important to increase Lille's advertising "as soon as possible."

Chief Executive Officer Mark Zuckerberg told investors in April that executives see Lille as "a key part of the discovery engine's vision," but at the time it was short. He explained that the video shift will increase as a "short-term headwind." As advertisers become more accustomed to the format, their revenue will gradually increase.

Cox said Meta also saw the potential for revenue growth in business messaging and in-app shopping tools, the latter of which could "reduce signal loss" caused by Apple-led privacy changes. He added that there is.

He said the company's hardware division "focused on the laser" later this year on the successful launch of a mixed reality headset with the code name "Cumbria". rice field.