SAN JOSE, Calif. (KGO) — On the heels of Elon Musk and Twitter laying off thousands of employees, Meta is also expected to make big cuts.
Meta, formerly known as Facebook, is expected to lay off thousands of employees starting at the end of the week.
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“You know, I’m not surprised up to a point,” said Ahmed Banafa, an engineering professor and technology expert at San Jose State University, adding that the layoffs highlight a problem. growing economy, especially in California.
He says these job cuts come at a time when inflation is causing problems for companies like Meta, Twitter and others.
Many have increased their hiring this year in anticipation of a big boom in the economy post-COVID. Sadly, Banafa says that didn’t happen and now layoffs.
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“I mean, it’s in all areas of the tech industry,” Banafa said. “Every consumer and every other dimension of the tech industry is hurting because of this hiring.”
However, Banafa says Meta also has issues specific to him.
Specifically, the stiff competition from TikTok, the loss of advertising dollars due to Facebook tracking issues, and the heavy investment in the metaverse.
“It’s very hard to look at a business and see that it’s really going in the wrong direction until we see the symptoms, which we see now,” Banafa said. “Something serious is happening with the company as it lays off thousands of employees.”
So what impacts can we feel in the Bay Area? Banafa says it might not be all bad news.
MORE: Here’s what experts say could be driving tech layoffs, how it could impact the Bay Area economy
He expects many of the thousands could be hired for in-person jobs, reviving the economy and preventing people from leaving the Bay Area while working from home.
Plus, many companies outside of the tech industry could hire these employees to share their expertise as everyone enters a new era of doing business.
“We shouldn’t undermine Silicon Valley’s ability to generate more ideas, more companies — we just cleaned up the pipeline,” Banafa said. “We are going to have a new wave of ideas, inventions and technologies.”
Unfortunately, he says the tech layoffs are likely to continue and the results on Election Day will provide a better picture of the industry’s future.
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