Facebook Cuts Hundreds of Jobs Due to Contract Termination with ABM

facebook Meta’s parent company terminated a contract with security guards at its Silicon Valley headquarters, cutting hundreds of jobs later this month.

Meta-Informed Object Management Provider ABM Industries to be canceled in mid-June, with the cuts taking effect July 25, according to documents filed with the California Employment Development Office.

In a July 1 letter, the ABM HR manager wrote to the department that the decision would affect 368 ABM employees at 1 Hacker Way in Menlo Park, California. The cuts include kitchen cleaners, night cleaners, waste sorters and cafe support, as well as 10 supervisors and seven managers.

“While a subsequent custodial provider that Meta has hired to perform these services may retain some or all of ABM’s employees on this account, ABM has no independent knowledge of plans to hire this provider,” an ABM spokesperson wrote.

The cuts come as Facebook’s online advertising business is struggling. slow down due to rising inflation, the war in Ukraine and changes in privacy on Apple iOS. In May, the company announced that slowdown in hiring after forecasting a potential year-on-year decline in second-quarter revenue.

The letter did not state the reason for the termination of the contract. A Facebook spokesperson said the company plans to replace the supplier with another company, but did not say how many workers would be part of the contract.

A spokesperson for ABM did not immediately respond to a request for comment.

The publicly traded company ABM, which employs more than 100,000 people, said in its December earnings report that it takes into account Facebook, Google as well as Adobe like clients. ABM said these companies were among those that “expanded their office space.”

Facebook’s indoor environments have become significantly quieter since the start of the Covid-19 pandemic in 2020. As the company planned to return to the office, employees were given the opportunity to apply for permanent remote work. Company reopened Bay Area offices for some employees in May.

Executive Director Mark Zuckerberg told the staff The company said last week that the company has cut plans to hire engineers by at least 30% this year. On Monday, reports surfaced that Meta’s management urged of employees to identify and report “underperforming”, adding that “they are letting this company down.”

— Jonathan Vanian of CNBC and Keith Leswing contributed to this report.

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