Meta will lay off 10K employees and eliminate 5,000 vacancies

Meta will lay off 10K employees and eliminate 5,000 vacancies

Mark Zuckerberg reported that the parent company of the social networks Facebook and Instagram will cut more jobs after a first wave of 11,000 layoffs in early November.

Meta will lay off 10,000 employees

Meta will lay off 10,000 employees. In addition, the Menlo Park (California)-based giant will eliminate 5,000 currently vacant positions from its organization chart and for which there will be no hiring, Mark Zuckerberg said in a statement.

The first affected will be from the company’s human resources department, as the company officially ends the wave of hiring it carried out when big tech companies ramped up their operations to cope with high demand during the coronavirus pandemic.

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In the months that follow, technology and business departments will also be affected, and “in a small number of cases, it may take until the end of the year to complete these changes,” Zuckerberg said.

The co-founder of Facebook and visible head of the social network already warned in February that 2023 should be “the year of efficiency” for Meta and that it would focus on achieving “a stronger and more agile organization.”

With these two massive cuts of around 26,000 positions, Meta will have reduced its staff by 24%, a 180-degree turn in its policy, since the group had never launched a layoff plan in its almost 20 years of existence.

For Zuckerberg, the decision is justified to “make (Meta) a better technology company” and “improve financial results in a difficult environment.”

In addition to cutting jobs, the company will slow the pace of hiring and “cancel non-priority projects.”

The organization has already declared a hiring moratorium until the end of March 2023.

Facebook, which changed its name to Meta at the end of 2021, has seen extraordinary growth since its founding but has subsequently been hurt by the decline in internet advertising.

It is a trend that was accentuated by the change in the iPhone operating system (iOS), which no longer allows the platform to collect as much data about its users as before, and by the rise in interest rates, which penalizes the sector technology, which needs a lot of money to finance its development.

Moreover, Facebook and Instagram are up against an upsurge in rivalry, particularly from the video-sharing website TikTok, which is eroding its market share.

The problems that Meta is facing caused its share price to fall by more than 60% during 2022, although its value has partially recovered since the beginning of 2023, thanks to Zuckerberg’s promise to redirect the direction.

In 2022, Meta’s turnover contracted by 1%, to 116.6 billion dollars. The share price of Meta on the stock market shot up another 5% after the announcement of the latest workforce cuts.

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