According to the reports, Tech billionaire Meta is planning a fresh round of layoffs globally in the coming week, whose numbers could go into thousands. It will be the second in less than four months that the tech giant is restructuring its business and cutting its global workforce to make it profitable.
It comes after significant layoffs announced by many technology companies, including Twitter, Netflix, Shopify, and Stripe. The sector slashed more than 9000 jobs in October alone, the highest monthly figure since November 2020.
While many of the cuts are aimed at executives, significant roles could still be affected, including HR and financial experts. In addition, some will be offered payoffs, while some may leave the company altogether.
According to Bloomberg’s report, the layoffs are expected to be finalized soon, which cited people related to the development. Those in charge of the plan want it ready before Facebook CEO Mark Zuckerberg takes parental leave for his third child, which is due imminently.
This phase of layoffs would follow a similar pattern to the one Meta conducted late last year after it trimmed 11,000 employees in November. However, that was the first time the social media giant had cut its headcount in a significant way since the company was founded 18 years ago.
As part of the restructuring, some leaders will be put into lower-level roles without direct reports and flatten out the layers of management. Other managers will be tasked with overseeing larger teams, the Washington Post reported in January.
Employees are dreading the move, which will come on top of another big round of layoffs at the company after the company’s massive bets in the field of the Metaverse failed to yield any profit. As a result, its share price has plummeted 25% in 13 months, losing more than $100 billion in market value.
It is also facing an economic recession, with more restrictions on advertising revenue and a shift in data privacy rules from Apple that have seen more users deleting their accounts. According to WSJ, this has left a hole in its finances, and the company is now laying off more than 11,000 workers.
Despite these concerns, according to Bloomberg’s report, the company has been conducting performance reviews to find out how it can improve its products and services in the future. This has been a vital part of the plan, which aims to bring the Metaverse back to profitability.
In a recent call with employees, Zuckerberg said that 2023 would be a “year of efficiency,” This theme has been communicated to them at team meetings and during performance reviews.
During the call, Mark Zuckerberg emphasized that he would take full responsibility for the job cuts. However, he has also directed employees to keep their heads down and focus on their work while watching the stock market.