Meta to Cut 25% of Workforce with Latest Layoffs
Meta, the parent company of Facebook and Instagram, is conducting another round of sweeping layoffs, including 10,000 job cuts and the closing of 5,000 open roles. CEO Mark Zuckerberg announced the news in a memo to staff on Tuesday, saying that the job cuts are part of a larger plan to flatten the company's management structure.[0]
The layoffs are expected to be completed by the end of the year, with tech groups to be impacted in late April, and business groups in late May.[1] Additionally, the company's recruiting team will be reduced in size.[1]
Mark Zuckerberg mentioned that higher interest rates, an unpredictable geopolitical atmosphere, and greater regulatory oversight have led to the job cuts, highlighting that the “new economic situation… leads to slower growth and higher costs for development”.[2] This suboptimal macroeconomic environment “will continue for many years,” he predicted.[2]
Zuckerberg also outlined other steps the company is taking to cut costs and improve financial performance, including slowing hiring, canceling some projects, and making the organization flatter by removing multiple layers of management.[3]
In February, Zuckerberg proposed the concept of the “Year of Efficiency” as the business persisted in witnessing its financials heading in an unfavorable direction.[0] On that call, he also suggested that more job cuts could be coming.
A review from Meta found that early-career engineers benefited from working with their teammates in person at least three days a week, which Zuckerberg echoed in his statement. This idea of having in-person collaboration and serendipitous interactions, as well as keeping productivity and culture alive in the office, has been supported by many business leaders.[4]
Meta is not alone in having to let go of employees due to inflation, concerns of a recession, and changes in demand caused by the pandemic. In the first months of this year, Amazon, Microsoft, Google and numerous startups in the Seattle area and Silicon Valley have all announced major rounds of layoffs.[5] Since Elon Musk became CEO in October, Twitter has been letting go of employees frequently.[5]
The job cuts will take place “over the next couple of months,” Zuckerberg said in the memo.[0] With the 11,000 job cuts announced in November and the 10,000 announced Tuesday, Meta’s headcount should be down to around 66,000 — a reduction of about 25%.[6]
0. “Meta is laying off 10,000 more workers as part of “year of efficiency”” CBS News, 14 Mar. 2023, https://www.cbsnews.com/news/meta-layoffs-year-of-efficiency-zuckerberg/
1. “Meta to lay off another 10,000 as Zuckerberg celebrates “year of efficiency”” Ars Technica, 14 Mar. 2023, https://arstechnica.com/tech-policy/2023/03/meta-to-lay-off-another-10000-as-zuckerberg-celebrates-year-of-efficiency
2. “Meta Cuts Another 10,000 Jobs” Forbes, 14 Mar. 2023, https://www.forbes.com/sites/dereksaul/2023/03/14/meta-cuts-another-10000-jobs
3. “Meta laying off 10000 more workers; cuts will impact engineering hub in Seattle region” GeekWire, 14 Mar. 2023, https://www.geekwire.com/2023/meta-laying-off-10000-more-workers-cuts-will-impact-engineering-hub-in-seattle-region/
4. “Zuckerberg: Engineers perform better when working in person” Business Insider, 14 Mar. 2023, https://www.businessinsider.com/mark-zuckerberg-meta-engineers-work-better-in-person-remote-2023-3
5. “Zuckerberg touts ‘year of efficiency' as Meta lays off an additional 10,000 workers” Engadget, 14 Mar. 2023, https://www.engadget.com/zuckerberg-touts-year-of-efficiency-as-meta-lays-off-an-additional-10000-workers-131957819.html
6. “Facebook-parent Meta plans to lay off another 10,000 employees” CNN, 14 Mar. 2023, https://www.cnn.com/2023/03/14/tech/meta-layoffs/index.html
