Meta mulls reducing money it gives news organizations - The Information
The social media giant has noticed that fewer people have been clicking on links to news articles since Donald Trump left office
Meta Platforms is considering reducing the money it gives news organizations as it reevaluates the partnerships it struck over the past few years, The Information reported on Monday, citing people familiar with the matter.
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The social media giant has noticed that fewer people have been clicking on links to news articles since Donald Trump left office, the report added, citing the people.
The Instagram parent did not immediately respond to a Reuters request for comment.
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Meta last week said it was slowing the growth of its workforce after recording its slowest revenue growth in a decade and Chief Executive Officer Mark Zuckerberg said it would scale back costs.
Meanwhile, on Saturday Meta announced it is planning to halt or slow down hiring for most mid-to-senior level positions as the tech giant faces headwinds both domestically and abroad.
Meta Platforms is considering reducing the money it gives news organizations as it reevaluates the partnerships it struck over the past few years. ((AP Photo/Tony Avelar, File) / AP Newsroom)
The company's recruiters have already begun the process of pausing tech screens and interviews for some roles, with a few exceptions, in fairness to candidates and to minimize the burden on its interviewers.
Meta Platforms Inc
"We regularly re-evaluate our talent pipeline according to our business needs and in light of the expense guidance given for this earnings period, we are slowing its growth accordingly," A spokesperson for Meta told FOX Business in a statement. "However, we will continue to grow our workforce to ensure we focus on long term impact."
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Meta notes its hiring efforts are currently outpacing active recruiting goals based on volume and changing business demand in a post-pandemic market.
The move follows the company's recent pause on hiring entry-level engineers. Meta emphasized that there are no planned layoffs.
Facebook CEO Mark Zuckerberg (AP Newsroom)
Meta earned $7.47 billion, or $2.72 per share, during the first quarter of 2022, down 21% from $9.5 billion, or $3.30 per share, in the same period a year earlier. Meanwhile, revenue rose 7% to $27.91 billion from $26.17 billion — the slowest growth rate in a decade for the online advertising powerhouse that generally reports sales growth in the double digits.
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During the quarter, Meta added over 5,800 net new hires, the majority of which were in technical functions. The figure is more than the entirety of the company's hiring during 2021. As a result, Meta's headcount grew 28% year over year to a total of more than 77,800 full-time employees.
- Fox Business' Lucas Manfredi contributed to this report.