Grim update for Facebook parent Meta as slashing of 10,000 jobs begins
Facebook parent Meta on Wednesday began its latest round of layoffs focusing on technical workers, who are often thought of as more immune to job cuts in Silicon Valley.
Meta spokesperson Nkechi Nneji confirmed to CNN that some previously announced layoffs were taking place Wednesday, and pointed to CEO Mark Zuckerberg’s March announcement that the company would cut another 10,000 employees in the coming months.
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Zuckerberg’s notice said that restructurings and layoffs in Meta’s tech groups would take place in April.
Among those affected by Wednesday’s layoffs were members of the company’s sustainability, well-being, user experience, news feed and messaging teams, according to public LinkedIn posts.
Meta reportedly told North American employees to work from home on Wednesday in anticipation of the layoffs. (CNN has not independently confirmed that.)
Members of Meta’s recruiting team were notified of additional layoffs last month, and cuts to the company’s Business groups are expected to take place in late May.
The 10,000 job reductions mark the second recent round of significant job cuts at Meta.
The company said in November that it was eliminating approximately 13 per cent of its workforce, or 11,000 jobs, in the single largest round of cuts in its History.
In September, Meta reported a headcount of 87,314, per a securities filing. With 11,000 job cuts announced in November and the 10,000 announced last month, Meta’s headcount will fall to about 66,000 — a total reduction of about 25 per cent.
Meta has said the layoffs are part of its “year of efficiency”, as the company attempts to engineer a turnaround following repeated revenue declines, heightened comPetition, concerns about user growth and big losses in its Reality Labs division amid its pivot to building the so-called metaverse.
Zuckerberg has also taken responsibility for over-hiring earlier in the pandemic, when there was strong demand for the company’s products and online advertising, which dropped off somewhat once the world reopened.
Zuckerberg said last month that, in some cases, it may take through the end of this year to complete its staff restructuring processes.
“As I’ve talked about efficiency this year, I’ve said that part of our work will involve removing jobs — and that will be in service of both building a leaner, more technical company and improving our Business performance to enable our long-term vision,” Zuckerberg said in his March statement.
Meta is set to report earnings for the first three months of 2023 next week, during which Wall Street analysts expect it to post its fourth straight quarterly decline in revenue and a more than 30 per cent decline in profits.
Still, Meta’s shareholders appear to have been reassured by Zuckerberg’s plans for efficiency — the company’s shares were up more than 70 per cent year-to-date as of midday Wednesday.
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