Meta to lay off additional 10,000 workers
By Abimbola Mohammed
Meta, the mother company of Facebook, has announced it will lay off 10,000 more workers and institute a further hiring freeze in a move that saw CEO Mark Zuckerberg warning economic instability could continue for “many years.”
The market reacted positively to the news with Meta shares closing up 7% on Tuesday.
In a post titled “Update on Meta’s Year of Efficiency”, Zuckerberg said: “Overall, we expect that we haven’t yet hired.”
“Part of our work will involve removing jobs and that will be in service of building a leaner, more technical company and improving our business performance to enable our long term vision.”
The post added, “Here’s the timeline you should expect: Over the next couple of months, organisation leaders will announce restructuring plans focused on flattening our organisation, cancelling lower priority projects, and reducing our hiring rates. With less hiring, I’ve made the difficult decision to further reduce the size of our recruiting team. We will let recruiting team members know tomorrow whether they’re impacted.”
In a SEC filing announcing the cuts, Meta said “As of today, we expect our full-year 2023 total expenses to be in the range of $86-92 billion, lowered from $89-95 billion previously. This includes the anticipated impact of these layoffs and other cost reduction measures, and is inclusive of restructuring costs of approximately $3-5 billion related to facilities consolidation charges and severance and other personnel costs.”
The new round of layoffs follows a previous round of cuts, announced in November that affected more than 11,000 workers, which equated to roughly 13% of Meta’s overall staff.
“We are a technology company, and our ultimate output is what we build for people,” Zuckerberg said. As part of the restructuring, the company will also increase the number of direct reports each manager has.
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