Facebook Parent Meta Cuts 10,000 Jobs

Facebook Parent Meta Cuts 10000 Jobs, Mark Zuckerberg, CEO of Meta. Credit: JD Lasica, CC-BY-2.0 / Wikimedia Commons

Meta Platform will cut another 10,000 jobs as the tech sector prepares for a sharp economic decline.

Facebook’s parent company announced Tuesday that recruiting teams and tech groups would reduce in late April, then business groups in late May.

Meta is also canceling 5,000 positions, lowering priority projects, and streamlining middle management.

Mark Zuckerberg, CEO of Meta and the parent company to Instagram and WhatsApp, shared a statement with employees, and on Facebook, on Tuesday morning, expressing his concern regarding the rapid economic changes that had taken place over the past year.

Describing it as a “humbling wake-up call” to the tech giant, he warned that they should be prepared for this new economic reality to continue for some time into the future.

This round of layoffs is set to take effect tomorrow, Wednesday. As part of their current hiring freeze, many recruiters have been informed that their services will no longer be needed, effective immediately, said Zuckerberg.

Facebook-parent Meta Platforms said it would cut 10,000 jobs, just four months after it let go 11,000 employees; first big tech company to announce a second round of mass layoffs; reports Reuters pic.twitter.com/5TowOa5lqS

— ANI (@ANI) March 14, 2023

Turning 2023 into a ‘Year of Efficiency’

Following a disappointing third consecutive quarter of declining revenue and profits, Mark Zuckerberg, CEO of Meta and the parent company to Instagram and WhatsApp, vowed to make 2023 the “Year of Efficiency.”

This latest move is expected to reduce Meta’s expenses in 2023 from an estimated 89 to 95 billion dollars to a range between 86 and 92 billion dollars.

When news of the widely speculated job cuts was made public, shares in the company rose 6%, based on the CNBC live stats.

$META announces more layoffs stock rallies. Near a new high.

Not a Recommendation pic.twitter.com/j271mVCcEh

— James Boyd (@JBoyd_TDA) March 14, 2023

Zuckerberg reaffirmed his commitment to creating a more efficient business model by stating that “part of our work will involve removing jobs – and that will be in service of both building a leaner, more technical company and improving our business performance to enable our long-term vision.”

Total layoffs in the 18-year company history

Last November, the world’s largest social networking company cut 11,000 jobs, 13% of its workforce, according to Zuckerberg’s official message to the employees of Meta.

The total number of employees stood at 86,482 by the end of 2022, reflecting a 20 percent increase from the previous year.

Over the past two years, Meta and other tech companies have exhibited a vigorous hiring approach. However, in recent months, these companies have started to lay off some of their employees.

Since the beginning of 2022, the tech industry has eliminated nearly 290,000 jobs, with about 40 percent of those layoffs occurring this year, according to layoff-tracking sites.

In a recent memo that announced additional layoffs, Zuckerberg, CEO of Meta, stated that it is no longer feasible for managers to oversee just a few direct reports. Many managers will now be required to assume the role of individual contributors throughout the organization.

Zuckerberg wrote that a leaner organization will allow for faster execution of high-priority projects, resulting in increased productivity and more fulfilling work experiences for employees.