Divided Technology Firms, What Will Happen to the US Labor Market?


 'That was the day they recklessly fired workers, what has happened now? It's been spit out, lick it again.'

The United States (US) labor market is plagued by uncertainty with mass layoffs in the technology sector by several social media companies.

According to a Wall Street Journal report, Meta Platforms is about to implement its massive layoff plan starting this week and is expected to leave a deep impact on thousands of company employees.

The layoff plan was revealed by Meta last October with weak projections in the 4th quarter and early next year predicted to cause the company to experience a $67 billion loss in stock value.

The poor outlook is underpinned by weak global economic growth, competition from TikTok, Apple's privacy changes, big spending on the metaverse and regulatory issues.

Chief Executive Officer (CEO), Mark Zuckerberg, commented that the company will reduce its investment in the next year to important and high-return areas as the economic outlook is seen as bleak.

It includes the layoffs of several employees in other divisions to reduce expenses in an effort to accommodate the company's metaverse efforts.

On the other hand, Twitter Inc. will reportedly recall some of the employees who were fired during the $44 billion acquisition by Elon Musk.

The news spread widely with the company reportedly contacting a group of former employees to ask them to return to work with Twitter.

It is said that some of the employees who were fired during the day were due to mistakes while others were due to differences of opinion with Musk.

As a reminder, Musk has fired about 50% of the workforce at Twitter after occupying the company's office last week, including several key executives.

So far Twitter has not given any further statement.