Meta Is Struggling to Grow for the First Time in the Company's History. Here's What That Means for Its Future. Tech companies that couldn't hire fast enough in 2020 are slashing jobs.

By Amanda Breen Edited by Jessica Thomas

Bloomberg | Getty Images

It's been a rough year for tech companies, including Mark Zuckerberg's Meta Platforms, Inc., formerly Facebook, Inc.

The company is experiencing a slowdown in its previously rapid growth for the first time since its 2004 founding. On Thursday, Zuckerberg said that Meta will freeze hiring and restructure some teams to cut expenses and readjust priorities, Bloomberg reported.

Related: Meta Imposes Strict New Policy for Restructuring Workers

Zuckerberg announced the freeze during a weekly Q&A with employees, noting that Meta would be "somewhat smaller" by the end of 2023. "For the first 18 years of the company, we basically grew quickly basically every year, and then more recently our revenue has been flat to slightly down for the first time," he said.

In a seeming reversal of outlooks in 2020 and 2021, tech companies like Robinhood and Coinbase that couldn't hire fast enough are slashing jobs, while airlines and hospitality companies struggle to bulk up their staff, per CNBC.

Meta in particular has faced additional challenges recently, per Bloomberg. Apple introduced privacy restrictions on tracking iPhone users, which has hurt its advertising business. TikTok continues to draw younger users away from Instagram, and Zuckerberg's metaverse endeavor is an expensive one.

Related: Meta Rolls Out New Feature for People Who Want to Make Money in the Metaverse

In its first-quarter earnings call, Meta revealed that its annual expenses would be approximately $3 billion lower than predicted initially — an estimate that had soared as high as $95 billion.

Meta, Inc. is down 60% year over year.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Inflation Unexpectedly Rose in January. Here's What That Means for Rate Cuts.

The U.S. Bureau of Labor Statistics released its January Consumer Price Index on Wednesday.

Business News

Elon Musk's xAI Is Reportedly Set to Hire Thousands of 'AI Tutors' With Pay Up to $65 an Hour

Employees told Business Insider the company is expanding hiring soon.

Growing a Business

The 10 Best Podcasts Every Entrepreneur Should Listen to for Growth, Strategy and Success

Unlock your potential with the 10 must-listen podcasts for entrepreneurs, offering expert insights on growth, strategy and success.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

This 31-Year-Old Spends 2 Hours Per Week On His $3,000-a-Month Passive Income Side Hustle: 'Trust Your Vision'

Hansel Moore's home office "wasn't cutting it" — so he found another place to be creative.

Growing a Business

How to Break Free From Your Comfort Zone and Start Fueling The Growth of Your Company

Have you ever found yourself stuck in a pattern, circling the same solutions without finding your way forward? Here's how to break free from our self-imposed limitations.