Facebook, Instagram, and WhatsApp owner Meta has disclosed that it would cut 10,000 workers.
After laying off 11,000 workers in November 2022, this will be the tech company’s second round of major layoffs.
Meta chief executive Mark Zuckerberg said the cuts would be “tough”, and formed part of a “year of efficiency”.
In addition to the 10,000 jobs that would be lost, the corporation will have 5,000 available positions.
In a note to the team, Mr. Zuckerberg expressed his belief that the firm had experienced “a humbling wake-up call” in 2022 when it noticed a slowdown in revenue.
Although earnings were down 4% year over year in the three months leading up to December 2022, Meta nevertheless managed to turn a profit of more than $23 billion for the entire year.
Mr. Zuckerberg listed more regulation, worldwide geopolitical unrest, and higher US interest rates as some of the issues affecting Meta.
Although earnings were down 4% year over year in the three months leading up to December 2022, Meta nevertheless managed to turn a profit of more than $23 billion for the entire year.
Mr. Zuckerberg listed more regulation, worldwide geopolitical unrest, and higher US interest rates as some of the issues affecting Meta.
“I think we should prepare ourselves for the possibility that this new economic reality will continue for many years,” he said.
The cuts come as businesses like Google and Amazon struggle with how to strike a balance between cost-cutting initiatives and the need to maintain competitiveness.
Due to “the uncertain economy” and quick recruiting during the pandemic, Amazon said at the beginning of this year that it would be cutting more than 18,000 jobs, while Alphabet, the parent company of Google, lost 12,000 positions.
Almost 128,000 jobs have already been lost in the tech sector in 2023, according to layoffs.fyi, a website that analyzes employment losses in the industry.
According to Mr. Zuckerberg, the recruitment staff will learn on Wednesday whether they are impacted by the cuts before anyone else. Additionally, he specified when other teams would be informed of their futures.
“We expect to announce restructurings and layoffs in our tech groups in late April 2023, and then our business groups in late May 2023,” he wrote in a memo to employees on Tuesday.
“In a small number of cases, it may take through to the end of the year to complete these changes.
“Our timelines for international teams will also look different, and local leaders will follow up with more details.”
