Meta cuts another 10,000 jobs in second phase of layoffs
Meta Platforms, the parent company of Facebook, has announced plans to cut 10,000 jobs in a second round of layoffs. This comes as Big Tech companies brace for a deep economic downturn.
The company will reduce the size of its recruiting team and make further cuts in its tech groups in late April, and then its business groups in late May. Meta has been engaged in a wider restructuring that will also see the company scrap hiring plans for 5,000 openings, cancel lower-priority projects and flatten layers of middle management.
Meta has struggled with a post-pandemic slump in advertising spending from companies worried about the economic outlook. In response, CEO Mark Zuckerberg promised to turn 2023 into the “Year of Efficiency”. With the latest move, Meta expects expenses in 2023 to come in between $86bn and $92bn, lower than the $89bn to $95bn forecast previously.
Zuckerberg said, “This will be tough and there’s no way around that… It will mean saying goodbye to talented and passionate colleagues who have been part of our success.” Zuckerberg said he believed “this new economic reality will continue for many years.”
Worries of an economic downturn due to rising interest rates have sparked a series of mass job cuts across corporate America, including Big Tech firms such as Amazon and Microsoft. The tech industry has laid off nearly 290,000 workers since the start of 2022, with about 40 percent of them coming this year, according to layoff-tracking sites.
While Meta is pouring billions of dollars to build the futuristic metaverse, the company is struggling to maintain its finances due to the economic downturn. Meta’s shares, however, jumped 6 percent in early trading on the news of the widely anticipated job cuts.
Zuckerberg promised to remove jobs as part of the company’s work to build a leaner, more technical company and improve its business performance to enable its long-term vision. Last November, Meta slashed its workforce by 11,000 in the first mass layoffs in its 18-year history. The company’s headcount stood at 86,482 at the end of 2022, up 20 percent from a year ago.
In conclusion, the economic downturn has affected many companies, including Big Tech firms. While the job cuts may be tough, it is a way for Meta to maintain its finances and build a leaner company. Let us hope that the economic situation improves soon, and people can find new jobs.