- Meta plans to "operate leaner" as it braces for a macroeconomic slowdown, according to a leaked memo seen by Reuters.
- In the memo, Meta's chief product officer warned "we are in serious times here and the headwinds are fierce."
- This comes as tech companies brace for slowing growth, with some announcing layoffs in recent weeks.
- For more stories, go to www.BusinessInsider.co.za.
Facebook owner Meta plans to trim excess costs as it readies itself for a slowdown in business for the second half of this year, according to an internal memo from Meta's chief product officer seen by Reuters.
In a note to employees, Chris Cox wrote that the company will "prioritize more ruthlessly" and "operate leaner, meaner, and better executing teams," according to Reuters.
Cox highlighted macroeconomic uncertainty as the reason for the decision, writing "we are in serious times here and the headwinds are fierce."
He also warned that "teams should not expect vast influxes of new engineers and budgets," Reuters reported.
See also | Mark Zuckerberg reportedly told Meta staff he's upping performance goals to get rid of employees who 'shouldn't be here'
In a comment to Insider, a Meta spokesperson said, "This was simply an internal strategy memo intended to build on what we've already said publicly in earnings about the challenges we face and the opportunities we have, where we're putting more of our energy toward addressing."
The memo comes as experts warn of stalling advertising spending across industries as companies brace for a possible US recession. Meta's CFO warned of a potential slowdown in advertising revenue earlier this year.
In February, the company reported its first-ever sequential quarterly decline in daily active users.
Many tech companies like Tesla and Coinbase have prepared for decelerating growth by announcing layoffs. While Meta has not announced layoffs, Insider has reported that the company has instituted a hiring freeze that will extend through the year.