10,000 More Meta Employees Losing Their Jobs

Key Takeaways:

• Meta CEO Mark Zuckerberg announced layoffs for the second time in four months.
• About 65,000 people will now work for the organization, down from a peak of about 86,000 last year.
• After Apple introduced its iOS privacy reforms, Meta’s business dropped by about $10 billion, heavily influencing layoff decisions.
  

WISCONSIN (CoinChapter.com) — Mark Zuckerberg, CEO of Meta, announced that the business intends to proceed with a second round of layoffs, affecting 10,000 employees; this is the second time Meta has let people go in four months. 

The layoffs were anticipated, but that doesn’t make the lives of those affected any easier. Zuckerberg says the company’s “Year of Efficiency” includes layoffs.

65,000 People Will Now Work For Meta, Down From 86,000 Last Year

Zuckerberg stated that Meta required the changes to improve its “financial performance in a challenging climate.” 

About 65,000 people will work for the organization formerly Facebook, down from a peak of about 86,000 last year. Zuckerberg described the mass layoff of 11,000 employees in November as “a last resort” at the time.

“There is no getting around the fact that this will be difficult,” wrote Zuckerberg in a post on Facebook. 

He added, “It will entail bidding farewell to motivated and talented coworkers who have contributed to our success. They have devoted themselves to our purpose, and I appreciate everything they have done. Like before, we will continue to assist those in need and care for everyone.”

In addition, the company will eliminate approximately 5,000 open positions that need to be filled. Meta will continue to lay off employees of its recruiting team, an area severely affected by the company’s prior layoffs. 

Zuckerberg warned that the business might be aiming to cut costs for some time.

Meta Employee Staffing Now In Line With 2021 Totals

The recent reductions have brought Meta’s personnel more in line with where it was two years ago. Many Meta employees were taken aback by the scale of the November layoffs, but this second round has been anticipated internally since at least January.

An internal directive for team managers was to place more employees in lower-ranking categories during performance assessments.

One of the early indicators was that there might be additional losses; these evaluations were recently finished earlier this month. The corporation then sought methods to reduce expenses while reducing perks and rewards.

The cost-cutting concept is novel for Meta, which has experienced tremendous growth since its establishment nearly 20 years ago. 

Although usage trends increased due to the Covid-19 epidemic, they did not stick around. Furthermore, investors started to lose patience with the enormous expense of the metaverse after Apple introduced its iOS privacy reforms, which had a $10 billion negative impact on Meta’s business.

Meta’s revenue per employee. Credit: Reuters

The market viewed Meta’s initial round of layoffs in November as a surrender to Wall Street’s downside projections. But, since then, the company’s stock price has risen.

Zuckerberg felt “surprised” by the cost-cutting benefits of the layoffs and increased communication. He said it had improved information flow throughout the business and would help create better products and recruit and retain better employees.