The tech industry, like Silicon Valley, was once a major force to be reckoned with. Giants like Meta, Facebook, Instagram, Twitter, and Amazon each ruled over their respective domains. Furthermore, they did so without any signs of ever having to worry about competition, and Mark Zuckerberg’s empire was one of them.
Recently, however, things seem to have changed, and the fact that this is so makes one wonder if that signifies the beginning of the end.
Facebook Meta layoffs
Mark Zuckerberg, CEO of Facebook’s Meta, is following in the footsteps of Elon Musk, head of Twitter, having just confirmed the massive lay off of over eleven thousand employees out of eighty-seven thousand yesterday.
No one knows when the decision was made. What we have learned is when it was enforced. That was around 6 a.m. Eastern time today.
According to The Wall Street Journal’s report, the head and founder of Meta officially made the announcement on Tuesday night. During the meeting, he blamed himself for the mistakes made by the company.
Zuckerberg’s overoptimism concerning future growth and expansion is listed in The Wall Street Journal as one of his more serious mistakes. This is an error which eventually led to a significant overstaffing problem.
Yet, one cannot ignore the fact that this result has been a long time coming. In fact, it was something Zuckerberg hinted at earlier this year when there was talk of Facebook layoffs as well. Preceding that was a rather harsh message to employees about a “tech meltdown.”
It was a decision Zuckerberg apparently did not take lightly, however, as Reuters noted. He seemed quite disheartened when making his address.
Following broad cuts Twitter CEO Musk made on the first official day of his takeover, reports have come out that he also ordered a significant reduction in staff at the company’s newly created office in Ghana. His purge has affected nearly all of the particular office’s employees, which was just under twenty.
Like in the United States, Twitter informed them via email or by blocking access to their company email accounts. According to local law, however, the staff are to receive a three-month severance pay. This is a fact Musk also tweeted out on November 4th.
Additionally, according to a report by Bloomberg this past Sunday, in a stark turnaround, he has already reached out to dozens who had just lost their jobs to ask if they would like to be reinstated.
In contrast to his tech colleague, if not rival, the manner in which Zuckerberg decided to inform his staff appears much more humane. He also will provide a four-month severance to those who will no longer remain on staff.
The future of high tech
Meta began as Zuckerberg’s vision for the future of what he called human connection. He intended this to amplify through the use of metaverse to create a 3-D, almost live experience.
His creation caused some backlash and a bit of déja vu, given that he was once again accused of stealing the idea, or, in this case, the name, much like the case brought against him when he first founded Facebook.
Furthermore, there have been rumors of problems with service. The reason is apparently two-fold. First of all, no one really knows what metaverse is. Secondly, even if they do, no one wants to use it.
Microsoft also recently jumped on the bandwagon when, in October of this year, they announced their metaverse partnership with Facebook. Problems have plagued the company ever since. The company, as well as those who invested, both lost their shirts in the bid.
Some experts say that the two companies’ failures to successfully launch their new product from the get-go is not permanent, however. It only needs time.
Tech giants falling one by one
Still, in the in-between, all three former tech giants have chosen to reduce costs by cutting down on their workforce. Nonetheless, Facebook, Meta, Microsoft, and Twitter are not the only ones. They merely joined the ranks of companies such as Seagate, Intel, and Snap. In total, over forty-five thousand people in the tech industry have lost their job this year.
Companies from other fields, such as Coinbase, Netflix, Shopify, Opendoor, and Lyft, have also chosen to resort to what public opinion may feel are drastic, unnecessary measures, particularly as they are the ones feeling the pinch.
All in all, the tech giants of the past seem to be falling like the now extinct woolly mammoths. Innovative companies, such as Mastodon, are stepping in to fill the increasingly wide gap. Likewise, market behemoths from other businesses, which once enjoyed a strongman’s strangle, hold the market in what might also be deemed as a downright monopoly.