Meta Platforms Inc (NASDAQ: META) CEO Mark Zuckerberg has reportedly asked his employees to brace for one of the worst economic downturns in recent history.
What Happened: Zuckerberg told his staff on Thursday that he was hoping to turn up the heat on them, Reuters reported on Thursday, citing an audio recording of an internal Q&A session.
“If I had to bet, I'd say that this might be one of the worst downturns that we've seen in recent history,” said Zuckerberg.
On trimming the workforce, Zuckerberg said, “Realistically, there are probably a bunch of people at the company who shouldn't be here.”
“Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn't for you, and that self-selection is OK with me,” he reportedly said.
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Why It Matters: Meta has trimmed hiring engineers this year to around 6,000 to 7,000 from its initial plan to employ 10,000 engineers, said Zuckerberg, as per the report.
The company will also reportedly leave some vacancies unfilled, as it also seeks to fire employees who fail to meet aggressive goals.
Last month, Chief Product Officer Chris Cox composed a memo to employees, which called for Meta to “prioritize more ruthlessly" and "operate leaner, meaner, better-executing teams,” according to Reuters.
Cox noted “fierce headwinds” and said teams should not “expect vast influxes of new engineers and budgets.”
Meta shares have fallen 52.1% since the year began. In the first quarter, Meta recorded revenue of $27.91 billion, which came in below the consensus estimate of $28.21 billion. Earnings per share were $2.72 in the period, ahead of Wall Street estimates of $2.56.
Price Action: On Thursday, Meta Platforms shares closed 2.7% lower at $161.25 in the regular session, according to data from Benzinga Pro.
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