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Meta 10,000 MORE Layoffs? Here’s What It Means
Adding to the already astonishing 11,000 posts cut last November, Meta announced its plans on Tuesday to pursue a harsh staff reduction, with an additional 10,000 employees likely to lose their employment.
Over 5,000 job positions will be eliminated at Meta, the company that powers Facebook and Instagram, as part of a deliberate decision by CEO Mark Zuckerberg to drastically reduce expenses and streamline operations.
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“Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” In an internal memo with the title “Update on Meta’s year of efficiency.”
It’s been a while since I’ve been this excited about something. The astonishing 53% increase in share price since the year’s beginning has the market buzzing with praise for the company’s financial restraint.
Zuckerberg intriguingly proclaimed 2023 as Meta’s “year of efficiency” in February, thus hinting that further streamlining initiatives could be in the horizon.
In his statement explaining the changes, Mark Zuckerberg emphasized a worrisome economic picture.
In his message, Zuckerberg alluded to the “surprising” feeling that his recent cost-cutting move would cause among his staff.
“At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years,” Zuckerberg said.
“Higher interest rates lead to the economy running leaner, more geopolitical instability leads to more volatility, and increased regulation leads to slower growth and increased costs of innovation,” he added.
According to a recent SEC filing, Meta has inventively streamlined its financial approach. The corporation has skillfully cut its prior estimate of $89-95 billion to a more realistic range of $86-92 billion for costs in 2023.
The business provided its estimate. “is inclusive of restructuring costs of approximately $3-5 billion related to facilities consolidation charges and severance and other personnel costs.”
Zuckerberg acknowledges that the tech juggernaut may have overdone its hiring drive during a time of surging tech values. The company’s most miserable year was 2022, which was marked by declining revenues and a difficult economic environment as it struggled with the pricey switch to cutting-edge metaverse technology.
Zuckerberg has started an unique “flattening” method, essentially removing several tiers of middle management inside the firm, in an effort to simplify processes and increase efficiency.
In light of recent disclosures from Bloomberg, Meta offers middle managers a brazen choice: adapt to an innovative “individual contributor” role inside the organization, or gracefully go.
In order to traverse the tumultuous seas of the current technological landscape, Meta has implemented intentional employee reductions with other industry giants like Amazon and Alphabet.
In a cloud of controversy, Meta and its competitors are grappling with negative criticism due to their employment tactics in the aftermath of widespread layoffs.
Thomas Siebel, a prominent wealthy tech Executive, has fiercely expressed his fears, claiming that the recent job layoffs are an unambiguous indicator that the “craziness” in the booming IT industry is waning.
According to Siebel, organizations like Meta and Google overhired employees despite the fact that “didn’t have jobs for these people.”
“They really were doing nothing working from home,” C3.ai CEO Siebel made this claim.
