The company’s move in November to slash headcount by 13% marked the first mass layoffs in its 18-year history.
Meta Platforms, which owns Facebook, said on March 14, 2023 that it would cut 10,000 jobs. This was just four months after it let go of 11,000 workers. It was the first Big Tech company to say it would cut a large number of jobs for a second time.
In a message to staff, CEO Mark Zuckerberg said, “We expect to cut our team size by about 10,000 people and to close about 5,000 more open roles that we haven’t yet filled.”
The layoffs are part of a larger restructuring at Meta. As part of the move, the company will flatten its organizational structure, cancel less important projects, and hire people less often. Meta’s stock went up by 2% before the market opened because of the news.
Zuckerberg wants 2023 to be the “Year of Efficiency,” and this move shows how serious he is about making that happen. He has promised to cut costs by $5 billion, bringing them down to between $89 billion and $95 billion.
The economy is getting worse, which has led to a lot of job cuts in corporate America, from Wall Street banks like Goldman Sachs and Morgan Stanley to Big Tech companies like Amazon.com and Microsoft.
Since the beginning of 2022, more than 280,000 people have lost their jobs in the tech industry. About 40% of these layoffs have happened this year, according to the site layoffs.fyi, which keeps track of layoffs.
Meta is spending billions of dollars to build the futuristic metaverse. However, after the pandemic, companies that were struggling with high inflation and rising interest rates cut back on their advertising spending.