Meta Platforms (NASDAQ: META) confirmed rumours of further impending layoffs on Tuesday, unveiling plans to let go upwards of 10,000 employees to keep in line with CEO Mark Zuckerberg’s mission to make 2023 the “year of efficiency.”
In a memo on Meta’s website, Zuckerberg announced the latest round of layoffs will eliminate about 10,000 staff. The firings are expected to begin this week starting with the recruiting team, followed by a haircut for the company’s tech and business groups in April and May. The latest round of layoffs follow November’s layoffs, which saw over 11,000 workers lose their jobs, which was roughly 13% of the workforce at the time.
At the same time, Zuckerberg is also planning on eliminating about 5,000 vacant job postings, just as numerous senior leaders are also voluntarily leaving the company. With growing concern over Zuckerberg’s workforce reductions, morale among employees has been low, as some team budgets get frozen and promotions are axed, people familiar with the matter have told the Financial Times.
The sudden workforce cuts come in response to growing investor concern over Meta’s inflated headcount, and the CEO’s bold move to allocate tens of billions of dollars towards the “metaverse,” which likely won’t heed profits for years. Commenting on last year’s employee reductions, Zuckerberg said that by axing inefficient projects and reducing middle management, decisions are being made faster and people are becoming more productive.
Information for this briefing was found via Meta and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.