The US economy has hit a negative growth trajectory and by doing so, has given birth to an economic recession that has begun taking its toll on media advertising markets. The decline in digital-ad sales along with other issues stemming from the economic downturn is forcing social media giants to take steps that may or may not save their sinking boats.
While Google may have to lay off employees if the economy slumps further, and Tesla may cut 10 percent of staff along with a pause on hiring, Meta was searching for ways it can do more with fewer resources as many are hesitant about spending money, with many more having less to spend. Now, Insider has reported that Accenture informed about 60 contractors working with Facebook, through the Irish-American professional services company, that they would soon have their work taken away from them.
Although the contractors were given the option to reapply for available work at the company with "no guarantee" of being rehired, they were informed of the decision that would take place on the 2nd of September, 2022, through a video meeting held by anonymous Accenture representatives.
Workers reported that when asked how people were chosen, the Accenture representatives said an algorithm chose people at random. A spokesperson for Accenture, Richard Keil commented on the topic, stating, "It would be inaccurate to report there are layoff actions in Austin." About the use of algorithms, Keil said, "We don't use algorithms to randomly select people."
According to a former worker, Accenture also put those employees on a "performance-development plan," who did not correctly log time away from their desks or who started work a few minutes late. These contractors were let go of their work first. All those who are not rehired or if they choose not to reapply, they will be paid through the 3rd of October.
Source: Insider
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