Workers at Meta are ready for hundreds more layoffs as the beleaguered social networking company continues to slash costs.
According to a CNBC report that was confirmed by Meta, a new round of layoffs began on Wednesday. The corporation will lose 4,000 employees immediately as part of a bigger plan to cut 10,000 jobs revealed earlier this year, with the majority of the cuts focusing on technical roles.
The layoffs, according to CEO Mark Zuckerberg, are part of the company’s “year of efficiency,” a cost-cutting strategy as Meta attempts to monetize its grandiose virtual reality effort, the metaverse.
The corporation reported a global peak of 87,000 employees in 2022, following a recruiting frenzy that accelerated when the Covid epidemic boosted online traffic.
However, Meta’s operations have faltered in recent months, with investors slashing $80 billion (£69 billion) from the company’s market worth in October following a bad earnings report.
The corporation let off 11,000 employees in November. With today’s downsizing, Meta is on course to eliminate approximately 21,000 jobs and has instituted a hiring freeze for the majority of new positions. While these layoffs are primarily aimed at technical staff, Zuckerberg stated in late May that additional layoffs would affect business divisions.
“A leaner organisation will execute its biggest priorities more quickly,” Zuckerberg stated at the time. “People will be more productive, and their jobs will be more enjoyable and rewarding.” We will become an even stronger magnet for the most skilled individuals. That is why, in our year of efficiency, we are focusing on cancelling initiatives that are redundant or have a lesser priority, and on making every company as lean as feasible.”
The cutbacks come at a time when other major behemoths such as Google, Tesla, and Amazon have implemented hiring freezes and cuts. The slump has been blamed on a variety of factors, including an uncertain economy colliding with years of unrestricted growth and pandemic-fueled hiring sprees. In the midst of the turbulence, investors will be monitoring Meta’s first-quarter earnings report next week with bated breath.