Meta Announces More Job Cuts in ‘Year of Efficiency’ Drive
Meta CEO Mark Zuckerberg plans to lay off thousands of jobs, he announced on Wednesday. Apparently, the platform will slash “projects that aren’t performing.”
In November, the tech giant had already cut off 11,000 jobs. Now, it is heading the same path with marketing, policy, and communications staff on the line.
Meta announced the layoff plan just this week. The company will lay off 10,000 more employees while preparing for restructuring expenses costing $3-$5 billion.
Facebook-parent Meta Platforms said it would cut 10,000 jobs, just four months after it let go 11,000 employees; first big tech company to announce a second round of mass layoffs; reports Reuters pic.twitter.com/5TowOa5lqS
— ANI (@ANI) March 14, 2023
This move follows Zuckerberg’s plan for the ‘year of efficiency.’ He is set to reduce non-essential functions and features. Meta is planning to prioritize new offerings and curb its finances.
Alongside the job cuts, significant changes are also happening at the top management. For instance, Nada Stirratt, sales VP for the US, will leave her job on Monday.
According to the DailyMail report, Marne Levine, the Chief Business Officer, resigned last month.
One of the senior staff shared in the Financial Times, “We have a real dilemma on our hands in terms of talent when there’s so much chaos.”
In addition, Zuckerberg also warned of the continuous economic inconstancy that could go on for “many years.”
Facebook parent company Meta will lay off another 10,000 employees, the company’s billionaire CEO Mark Zuckerberg announced Tuesday, the second-such massive round of layoffs as the company drastically cuts costs. https://t.co/5gj70MR6Pe pic.twitter.com/GdrKKRtL0R
— Forbes (@Forbes) March 15, 2023
He also stated in a message addressed to employees, “Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,”
Over the last 12 months, Meta has been struggling with growth. The major factors at play are the increasing competition with TikTok and the budget withdrawal from advertisers.
These advertisers saw stiff competition and Facebook’s loss of users in the first quarter, which led to the withdrawal.
Furthermore, as a contingency plan, the Meta CEO has named 2023 a ‘year of efficiency.’
Meta is looking to reduce costs. Zuckerberg wrote in a Facebook post, “2022 was a challenging year, but I think we ended it having made good progress on our main priorities and setting ourselves up to deliver better results this year as long as we keep pushing on efficiency….”
Meta’s spokesperson shared with TechCrunch that the company will focus more on products like Meta Pay.
It will also lean towards features that will permit creators to earn directly from Meta’s social media platforms.
Although Meta’s shares showed improvement by 18%, most innovations are unsuccessful. Last year, Reality Labs, which handles virtual reality features, lost $13.7 billion.
They’re also included in the current layoffs. In addition, Chief Business Officer Marne Levine’s resignation placed the company in a spiral.
Moreover, Meta is not going solo on this path. Layoffs from other tech giants like Amazon, Microsoft, and Twitter are imminent.
In November 2022, Twitter cut off 3,700 employees, which is almost half of its labor force. It is due to Elon Musk’s remodeling plans after his takeover.
In addition, Salesforce also announced layoffs in January with 10% of its employees. It is a total of 8,000 workers who would lose their jobs.
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