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Economy: Meta halts hiring, plans ‘restructuring’ as recession fears hit Big Tech

*Meta Platforms, parent company of Facebook, becomes the latest Big Tech firm to announce a pause in hiring and subsequent restructuring amid fears of a global recession

Gbenga Kayode |  ConsumerConnect

The global technology industry, reportedly, has been swimming in molasses over the past few months after witnessing unprecedented growth during the damaging Coronavirus (COVID-19) pandemic.

ConsumerConnect learnt these fears had been triggered by high inflation, a prolonged war between Russia and Ukraine, global supply chain shortages and dwindling advert spends.

Amid an economic downturn, and rising interest rates in several economies, including Nigeria, several tech firms have laid off workers or stopped hiring, report said.

Facebook’s parent firm Meta is the latest to do so, agency report said.

The big tech says it has frozen hiring, and plans to ‘restructure’ the organisation as recession fears loom in the global economic horizon.

Meta Platforms is the latest Big Tech firm to announce a pause in hiring and subsequent restructuring amid fears of a global recession.

Some Big Techs’ previous announcements on hiring

It is noted that the Facebook parent’s decision comes after similar announcements by global tech majors, such as Apple, Microsoft and Google.

In June 2022, Meta had disclosed it planned to reduce its hiring of engineers by at least 30 percent this year.

“Worryingly, this is possibly the first time since the 2008 financial crisis that Apple and Google have cut their headcounts and frozen hiring,” report stated.

According to data compiled by Crunchbase, over 32,000 US tech workers, including those at Big Tech firms, had been laid off as of late July.

Zuckerberg speaks on company’s decision

Mark Zuckerberg, Chief Executive Officer (CEO) of Meta, told some employees during a weekly Q&A session: “I had hoped the economy would have more clearly stabilised by now, but from what we’re seeing, it doesn’t yet seem like it has, so we want to plan somewhat conservatively.”

Report indicates his   comments came two days after Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WHO) said a recession was around the corner.

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