The firm stated Tuesday that Facebook would shed 10,000 more employees and incur restructuring costs of between $3 billion and $5 billion. CEO Mark Zuckerberg expressed concern that the economic unrest would last for “many years.”
On Tuesday, shares of Meta ended 7% higher.
“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,” Zuckerberg said in a message to staff members that was also posted to the tech company’s blog.
He continued by saying that the employer of Facebook intends to fill 5,000 extra available positions. Zuckerberg said that the business should get ready for “the potential that this new economic reality may remain for many years” in an apparent reference to the ongoing economic insecurity.
Meta stated that it projected lower overall expenses in 2023, ranging from $86 billion to $92 billion, in an SEC filing announcing the reduction.
The latest round of layoffs comes after a previous one in November that affected more than 11,000 workers, or nearly 13% of Meta’s whole workforce.
The company’s “year of efficiency,” according to Zuckerberg, is 2023, when it hopes to become “a stronger and more nimble corporation.”
We are a technological firm, and what we create for people is what we do best, according to Zuckerberg. The number of direct reports each manager has will also increase as a result of the restructure.
In February, Zuckerberg informed analysts that Meta intended to “cut initiatives that aren’t performing or may not be crucial” while also “removing layers of middle management to make decisions quicker.”
A leaner organization will carry out its top objectives more quickly, according to Zuckerberg’s message.
Still, Meta continues to spend billions of dollars developing the virtual reality and augmented reality technologies required to build the digital universe coined the metaverse. The company’s Reality Labs division that’s tasked with creating the metaverse lost about $13.7 billion in 2022 on $2.16 billion of revenue.
In January, Amazon announced a fresh round of layoffs that would affect 18,000 workers from various divisions.
Additionally recently revealed significant staff reductions at Twilio, Dell, Zoom, and eBay. In January, Google announced intentions to fire more than 12,000 employees, Microsoft said it would lay off 10,000 workers, and Salesforce said it would eliminate 7,000 positions.
