In a move that has sent shockwaves through the tech industry, Meta, the parent company of social media giants Facebook and Instagram, is preparing to make a second round of layoffs. The layoffs are expected to cut thousands of employees and will reportedly begin this week.
The news of the second phase of layoffs at Meta was reported by Bloomberg, citing a source familiar with the matter. This comes just months after the company downsized its workforce by 11,000 employees, which constituted around 13% of its total employees.
The CEO of Meta, Mark Zuckerberg, announced the layoffs in November 2022, stating that 2023 would be a year of efficiency for the company. Zuckerberg emphasized that the company would focus on reducing spending and improving its operations.
To achieve this, Meta has put in place several strategies, including streamlining its organizational structure, trimming unprofitable projects and teams, and eliminating layers of management to make decision-making more efficient.
These cost-saving measures were implemented after Meta experienced a challenging year, marked by economic uncertainty and fierce competition from rivals such as TikTok. Additionally, the Menlo Park, California-based company has reportedly lost billions of dollars in its development of the metaverse.
According to the Bloomberg report, the second phase of layoffs at Meta is being driven by financial targets and does not involve any restructuring or flattening of the company. Meta has reportedly asked its directors and vice presidents to compile a list of employees who can be laid off.
The second phase of layoffs is expected to be finalized next week. The employees and managers involved in the planning hope to complete the process before Zuckerberg takes time off following the birth of his third child, according to Bloomberg.
The first round of layoffs in November 2022 took many employees by surprise, and the surviving workforce is already anticipating a second round of cuts. Employee morale has reportedly taken a hit, with some expressing concerns about their ability to receive bonuses if they lose their jobs before the end of the month.
The news of the impending layoffs has raised questions about the future of Meta and its ability to compete in the rapidly changing tech landscape. The company has faced intense scrutiny in recent years over issues such as data privacy and the spread of misinformation on its platforms.