Something small: Meta is laying off thousands more employees while it continues its “restructuring” efforts. Last November, Mark Zuckerberg blamed himself for firing thousands of workers. This time around, the company is shedding about the same number due to “high interest rates,” “geopolitical instability,” and “increased regulation.”
On Tuesday, Mark Zuckerberg personally announce Another round of layoffs through his Facebook page. Meta has been in the middle of a restructuring effort ever since eliminate About 11,000 jobs last November. This time, the CEO says, the company is looking to shed another 10,000 employees, which is about 13 percent of its workforce.
The two rounds of cuts followed a period of unchecked hiring during the pandemic when there was a spike in Instagram and Facebook app usage. From April 1, 2020, through layoffs last November, Meta hired nearly 40,000 new employees, swelling its workforce by more than 81 percent.
Meta plans to split the current cuts into three phases to make for a smoother transition than letting everyone go at once. Because it’s downsizing, there’s less need for active recruits, so Meta will start reducing staffing starting tomorrow. It will eliminate technical positions in April and commercial roles in late May.
In addition to the new layoffs, the Meta has eliminated about 5,000 job vacancies and plans to cancel several unnamed “low priority” projects. In addition, Zuckerberg mentioned that the company will reduce hiring rates, but this goes without saying.
According to an 8-K filing with the Securities and Exchange Commission, the company expects the cuts to shaving About $3 billion of its total expenses for 2023, including $3-5 billion “related to fees for facility consolidation, termination, and other personnel costs.”
Meta wants to finish analyzing the last hybrid work experience by this summer to assess its efficiency and expects to complete its transition to a smaller machine by the end of the year. After the restructuring, the company will lift the hiring and transfer freeze cases.
Despite the cuts, Zuckerberg is still betting big on his Metaverse plans. The Quest 3 still On the road To launch 2023. The company also plans Several future AR and VR products, including multiple sets of augmented reality glasses that are tentatively scheduled for release between 2024 and 2028.
The CEO indirectly blamed cuts in the Federal Reserve for raising interest rates resulting in a “more flexible” economy. He also attributed the restructuring to “geopolitical instability” and increased regulations, warning that there was more to come.
“At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years. Higher interest rates make the economy leaner, more geopolitical instability leads to more volatility, and increased regulation slows growth and increases the costs of innovation.” Given these expectations, we will need to operate more efficiently than previous staff reductions to ensure success.”
The total cuts since November are equivalent to just about half the staff gained during the meta-pandemic hiring spree. Given that the economic outlook was much better prior to 2020, more “restructuring” could come if the overall health of the economy does not improve.