Meta slips 3.4% as it slashes engineer hiring, 'turning up heat'

Jul. 01, 2022 10:37 AM ETMeta Platforms, Inc. (META)By: Jason Aycock, SA News Editor114 Comments

Facebook CEO Mark Zuckerberg And News Corp CEO Robert Thomson Debut Facebook News

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  • Meta Platforms (NASDAQ:META) is slashing its hiring of engineers this year by 30%, a move falling right in line with a dire warning the company issued Thursday about its second-half expectations.
  • Meta stock (META) is the worst performer among big-company Communications stocks Friday, down 3.4%. In 2022, it's now down 54% for the year.
  • The company had said in its last earnings call that it would respond to slower growth with a corresponding cut in investments, particularly in its more future-focused bets that it houses in Reality Labs.
  • Now CEO Mark Zuckerberg has put some numbers to that. In an employee Q&A session, he said Meta had previously planned to hire 10,000 new engineers in 2022, but that target's now down to 6,000-7,000, according to media reports.
  • The economic situation is "one of the worst downturns we've seen," Zuckerberg said.
  • It's not just new hiring feeling the pressure, either. Zuckerberg said he'd be "turning up the heat" on existing hires who may prove unable to meet more aggressive goals.
  • "Realistically, there are probably a bunch of people at the company who shouldn't be here," Zuckerberg reportedly said. "Some of you might decide that this place isn't for you, and that self-selection is OK with me."
  • The hiring-cut details add on to a warning issued by Chief Product Officer Chris Cox Thursday, saying that employees will need to prioritize "ruthlessly" and operate leaner and meaner: "We are in serious times here and the headwinds are fierce."

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