Meta announced a second round of layoffs. It’s the only major tech company to announce a second round of mass layoffs for 10,000 employees.
Why this sudden decision?
The parent platform of Facebook, Instagram and WhatsApp laid off up to 11,000 people over the past year and is already preparing to lay off another 10,000, reports The Times of India.
In the official email, Zuckerberg hinted that Meta is experiencing financial difficulties and intends to use resources more effectively to improve operations and achieve better results. He said Meta experienced rapid expansion before 2022, but as competition erupted and growth halted, the company suffered financially.
Meta’s market position
The pandemic has significantly increased demand for Meta’s digital services, resulting in a 30% increase in employment in 2020 and a 23% increase in 2021.
Still, the company’s ad revenue has slowed, leading to its first annual revenue decline in 2022. In response, Zuckerberg has redirected the company’s efforts and financial resources to virtual reality and the metaverse, which he sees as the next leading digital platform.
These changes have prompted Meta to streamline its operations and reduce its headcount. The organization began laying off staff in November last year when it had about 87,000 employees.
CEO Mark Zuckerberg has stressed the need for efficiency, calling 2023 the “Year of Efficiency” in a recent conference call. Meta has already begun the “flattening” process, which involves assigning specific middle managers to individual employee positions rather than acting as the primary manager of other workers.