What you need to know
- Meta previously announced plans to lay off more than 11,000 employees in the second half of 2022.
- The company has announced plans to lay off another 10,000 employees.
- Meta calls 2023 the “Year of Efficiency”.
Mehta tells employees to prepare for more layoffs as the company continues to cut jobs. In an employee update released Tuesday, Meta CEO Mark Zuckerberg announced that the company plans to cut about 10,000 employees and close about 5,000 unscheduled jobs.
The move is the company’s latest effort to increase efficiency by optimizing workflows across the company and removing unnecessary or redundant roles.
“Our efficiencies include improving organizational efficiency, dramatically improving developer productivity and tooling, optimizing distributed work, and garbage collecting unnecessary processes. We have a workstream that we did,” Zuckerberg said in a note. “I have tried to be open about all the work that is going on. I am also aware of what it creates.”
Meta will start by cutting its hiring team to slow hiring, then reorganize and layoffs within its technical group in late April, and finally cut members of its business group. This includes removing multiple management layers to improve information flow. Meta will also cancel some low-priority projects, invest in tools to improve efficiency, and encourage more in-person work.
“For most of our history, we had rapid revenue growth every year and had the resources to invest in many new products,” continues Zuckerberg. “But last year was a humble wake-up call.” . With the new layoffs, Meta plans to cut about 21,000 full-time workers, and the company says the move could take place before the end of the year.
In its latest earnings report, Meta calls 2023 the ‘year of efficiency’, suggesting more changes to come as it seeks to streamline its business as it navigates the macroeconomic environment. doing.
“I think the reduction in management should improve the flow of information within the company and enable faster decision-making,” Zuckerberg said on an earnings call. Building better and better products is important, but I think it helps us attract and retain top talent who want to work in a fast-paced environment. ”
Meta isn’t the only company to lay off thousands of employees. Amazon has announced job cuts in two parts, cutting about 18,000 jobs. Microsoft and Alphabet have also cut staff, highlighting changes in companies dealing with economic pressures following mass hiring due to the pandemic.
As for Meta, the company is betting big on AI and virtual reality, but some investors are against it because the company’s Reality Labs division bears a lot of the costs. But despite the loss, Zuckerberg remains committed to the job and the long-term benefits it could bring to the company, even if it means changing the way Meta operates.
“My hope is to make these organizational changes as soon as possible before the end of the year so that we can get through this period of uncertainty and focus on the important work ahead.”
