Meta to lay off 10,000 more workers after initial cuts in November

 Meta to lay off 10,000 more workers after initial cuts in November

 

• Mark Zuckerberg, CEO of Meta, announced Tuesday that the business intends to lay off 10,000 workers.
• In November, the business let go of more than 11,000 workers. 
• 2023 has been positioned by Zuckerberg as Meta's "year of efficiency."
• In an earlier interview with analysts, the CEO of Meta stated that the company intended to "eliminate initiatives that aren't functioning or may not be critical" while also "removing layers of middle management to make decisions faster."

 

The firm stated Tuesday that Facebook would shed 10,000 more employees and incur restructuring costs of between $3 billion and $5 billion. CEO Mark Zuckerberg expressed concern that the economic unrest would last for "many years."

 

On Tuesday, shares of Meta ended 7% higher.

 

"Here's the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our organs, canceling lower priority projects, and reducing our hiring rates," Zuckerberg said in a message to staff members that was also posted to the tech company's blog.

 

He continued by saying that the employer of Facebook intends to fill 5,000 extra available positions. Zuckerberg said that the business should get ready for "the potential that this new economic reality may remain for many years" in an apparent reference to the ongoing economic insecurity.

 

Meta stated that it projected lower overall expenses in 2023, ranging from $86 billion to $92 billion, in an SEC filing announcing the reduction.

 

The latest round of layoffs comes after a previous one in November that affected more than 11,000 workers, or nearly 13% of Meta's whole workforce.

 

The company's "year of efficiency," according to Zuckerberg, is 2023, when it hopes to become "a stronger and more nimble corporation."

 

We are a technological firm, and what we create for people is what we do best, according to Zuckerberg. The number of direct reports each manager has will also increase as a result of the restructuring.

 

In February, Zuckerberg informed analysts that Meta intended to "eliminate programs that aren't performing or may not be necessary" while also "removing layers of middle management to make decisions faster."

 

A leaner organization would carry out its top priorities more quickly, according to Zuckerberg's speech.

 

The virtual reality and augmented reality technologies needed to create the virtual world known as the metaverse are still being developed by Meta at a cost of several billion dollars. On $2.16 billion in revenue, the company's Reality Labs division, which is in charge of building the metaverse, lost nearly $13.7 billion in 2022.

 

Amazon announced a new round of layoffs in January, impacting 18,000 employees across multiple divisions.

 

Twilio, Dell, Zoom, and eBay also recently disclosed significant reductions to their workforce. In January, Google revealed plans to lay off more than 12,000 workers, Microsoft announced plans to cut 10,000 employees and Salesforce said it planned to cut 7,000 jobs.