Meta Initiates Layoffs as Part of Restructuring Efforts

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Meta layoffs

Meta, the parent company of Facebook, has begun implementing a round of layoffs as part of its previously announced restructuring plan. Employees in various business groups, including operations, project management, marketing, policy, communications, and risk analytics, took to social media on Wednesday to announce that they had been laid off.

Although Meta has not confirmed the ongoing reductions, a spokesperson pointed to CEO Mark Zuckerberg’s March blog post, where he stated that the company would eliminate 10,000 employees this year. According to Zuckerberg, the affected members of the business groups would be notified in May. These layoffs are expected to be the third and final major round, with previous notifications sent to employees in Meta’s technology and recruiting teams over the past two months. Some smaller reductions may continue through the end of 2023, as stated by Zuckerberg.

This round of layoffs marks the second significant wave of job cuts at Meta in recent months. In November, the company announced the elimination of approximately 11,000 jobs, accounting for around 13% of its workforce, in the largest round of cuts in its history.

Meta’s headcount was reported as 87,314 in September, according to a securities filing. With the 11,000 job cuts announced in November and the additional 10,000 announced in March, the company’s headcount is expected to decrease to approximately 66,000, representing a total reduction of about 25% assuming no further hiring.

The layoffs are part of Meta’s “year of efficiency” strategy as it seeks to recover from revenue declines, intensified competition, concerns about user growth, and losses in its Reality Labs division amid its focus on building the metaverse. Zuckerberg acknowledged the company’s over-hiring during the pandemic when demand for its products and online advertising was high but dropped off once the world reopened.

Despite the challenges, Meta’s turnaround efforts are showing early signs of success. Last month, the company reported a 3% year-over-year increase in revenue for the first quarter of 2023, reversing a trend of three consecutive quarters of declines. However, profits declined by nearly a quarter compared to the same period in the previous year, and the price per advertisement, a key indicator of the company’s core digital ad business, decreased by 17% year-over-year.

Zuckerberg expressed confidence in Meta’s progress during an earnings call, noting that the company’s “efficiency work” is now being done from a position of strength.

Nevertheless, the layoffs have had a significant impact on the affected employees. Many expressed their emotions and challenges through social media, highlighting the difficulty of facing unexpected job cuts and the importance of finding meaningful work and supportive colleagues.

In conclusion, Meta’s implementation of layoffs is part of its ongoing restructuring efforts to streamline operations and improve efficiency. As the company continues to navigate challenges and pursue its vision for the metaverse, it remains focused on adapting to changing market dynamics and driving sustainable growth in the digital landscape.