Meta Stops Hiring New People Citing Weak Revenue Forecast

Citing a weak revenue forecast, Meta has reportedly paused hiring new personnel across all the segments.

This comes after a strong growth seen in the latest quarter, including an add-up of users. Yet, Meta is cautious about the weak forecast and said that Facebook might lose around $10 billion due to Apple’s latest privacy settings in iOS and the ongoing war between Russia vs Ukraine.

Paused Hiring Due to Anticipated Loss

Amongst the few tech companies that reported strong growth in the last quarter is Meta, the parent company of Facebook, Instagram, and WhatsApp. The company even noted gaining active users, which it had lost in the previous year.

While it’s well and good, Meta said it’s expecting a fall in growth and revenue in the upcoming quarter. This comes from the company’s internal analysts, who forecast weak revenue in the next quarter. Thus, Meta started cutting down costs wherever it could to suffice this.

In this pursuit, Meta is reportedly pausing the recruitment of new talent in the mid-to-senior level positions, reports Bloomberg and CNBC. The company has already stopped taking in new personnel entry-level engineers over the past weeks.

The company cited the ongoing war between Ukraine and Russia as one of the reasons for this weak forecast. Meta’s CFO David Wehner said the company has “experienced a further deceleration in growth following the start of the Ukraine war due to the loss of revenue in Russia as well as a reduction in advertising demand both within Europe and outside the region.”

Also, Meta cited the recent privacy settings in iOS, where Apple blocks access to third-party services like Facebook to access users’ unique IDFA code, as one of the reasons. The unique IDFA is needed for targeted ads, on which Facebook relies heavily on. Also, the lack of ad demand from within and regions around Europe has been a factor too.

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