Facebook (now Meta) plans to lay off another 10,000 workers in an effort to improve its financial performance. This is Zuckerberg’s second wave of layoffs after cutting 11,000 jobs in November as part of the internet giant’s “year of efficiency”.
Business interested reports Facebook announced another round of layoffs, this time laying off 10,000 workers in an effort to improve the company’s financial condition. It follows mass layoffs of 11,000 workers in November last year, which CEO Mark Zuckerberg described at the time as a “last resort”. A total of 5,000 job postings that Meta has not yet filled will also be closed by the company. Zuckerberg has declared 2023 the “year of efficiency,” and it appears that continued layoffs have been a key part of his strategy.
Mark Zuckerberg Meta Selfie (Facebook)
With a picture of himself on display in the background, Mark Zuckerberg, co-founder and CEO of Facebook, testifies before the House Financial Services Committee in the Rayburn House office building on Capitol Hill on October 23, 2019 (Photo by Chip Somodevilla/Getty Images)
In a Facebook post on Tuesday, Zuckerberg stated that cuts must be made to improve the company’s performance in a difficult financial environment. The CEO warned that the company could look to cut costs for a while, saying, “At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years.”
According to Insider, the new round of layoffs had been anticipated internally at least since January. In order to reduce costs, the company forced team managers and managers to place more employees in lower-rated categories during performance reviews. Then I continued to look for other cost-cutting measures, such as reducing perks and benefits. Within the organization, talk has recently turned to “flattening,” referring to Zuckerberg’s proposal to remove layers of management in his organization.
The concept of cost cutting is relatively new to Facebook, which has seen exponential growth since its founding nearly 20 years ago. Investors are starting to lose patience with the massive cost of Zuckerberg’s Metaverse, and Apple’s introduction of its iOS privacy changes had a negative $10 billion impact on the company’s advertising business.
For the first time since 2021, when Facebook announced it was entering the metaverse, even changing its name to Meta, Zuckerberg softened his talk about creating the metaverse and its associated costs in his letter to employees on Tuesday.
During a fourth-quarter earnings call, Zuckerberg stated that 2023 would be a dead “year of efficiency” and that he didn’t want the business to be one of the “CEOs”.
Zuckerberg said that members of Facebook’s hiring team will be informed of their employment status on Wednesday and that other restructuring measures will be implemented by the end of April or the beginning of May.
Since the first round of layoffs, the company’s share price has been on the rise. Speaking last month during earnings, Zuckerberg expressed amazement at the cost-cutting benefits of layoffs as well as future product advancements at Facebook. “It’s made information flow through the company better, and it’s going to help us make better products and attract and retain better people,” he said. “It was honestly surprising to me—when we started digging into this, the company felt better to me.”
With the latest round of layoffs, Facebook will have more or less employees than it did two years ago. And on Tuesday morning, the company’s share price rose more than five percent. Many employees were shocked by the scope of the layoffs in November, but this second round had been expected internally for some time.
Read more Business Insider here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and internet censorship. Follow him on Twitter @tweet
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