Mark Zuckerberg, CEO of Meta (formerly known as Facebook) has announced a second round of layoffs which have reportedly affected more than 10,000 employees worldwide (approximately 13% of the workforce). The move comes as part of a restructuring plan aimed at focusing the company’s efforts on its core products and services. The announcement was made in a public memo by Zuckerberg.
In addition to the 10,000 cuts, Meta is also continuing to reduce employee perks and will close about 5,000 job postings that have yet to be filled, according to Zuckerberg.
The announcement is not surprising given Zuckerberg has openly criticized Meta employees previously, in a now infamous statement that “realistically, there are probably a bunch of people at the company who shouldn’t be here,” in July 2022.
Meta’s first large layoff occurred in November 2022 when the company eliminated 11,000 positions or about 13% of the workforce at the time.
Meta layoffs in a “year of efficiency”
The new layoffs are the largest in the company’s history (taking into account closing open headcount combined with the layoff) and are seen as a significant shift in its strategy. Zuckerberg stated that the company was “refocusing our efforts on our core products and services, and streamlining our operations to better support those efforts.”
“This will be tough and there’s no way around that,” Zuckerberg commented in the memo.
The move is expected to result in significant cost savings for the company.
The restructuring plan includes a renewed focus on the company’s social media platform and its virtual and augmented reality offerings. Meta is also reportedly looking to expand its presence in the e-commerce space, with plans to launch a new shopping platform later this year.
The layoffs have caused concern among current and former employees, who have expressed disappointment and frustration with the company’s decision. Many have criticized the company’s leadership for what they see as a lack of transparency and communication throughout the process.
Zuckerberg stated in an earnings call in February that he “takes the blame” for overhiring throughout the pandemic. At its peak, Meta had 87,000 employees last year.
Now, Zuckerberg doesn’t want “managers managing managers” and vows to put an end to unchecked growth.
Meta is still trying to convince us we need the Metaverse
The timing of the second round of layoffs remains controversial amongst employees, noting that they come at a time of increasing scrutiny for the tech industry as a whole. Meta and other tech giants have faced growing criticism over privacy, misinformation, and the impact of their platforms on society.
Meta continues to be in the midst of a very public transition to a “metaverse” company, which has not been going well. The company has already drastically cut expectations for its Metaverse world Horizons World by more than half.
Privacy also remains a large concern according to surveys, with 87% of Americans finding the Metaverse a privacy black hole.
