Facebook owner goes for second round of layoffs and fires 10,000 people

Dona do Facebook parte para segunda ronda de despedimentos e dispensa 10 mil pessoas

Meta Platforms, the parent company of Facebook, said Tuesday it would cut 10,000 jobs, just four months after laying off 11,000 employees in what was the first 'Big Tech' company to announce a second round of mass layoffs.

"We expect to reduce the size of our team by about 10,000 people and close about 5,000 additional open jobs for which we have not yet hired," CEO Mark Zuckerberg said in a message to employees, quoted by Reuters.

The layoffs are part of a broader restructuring at Meta, which will see the company level out its organizational structure, cancel lower priority projects and reduce its hiring rates as part of the move. The news sparked a 2% rise in Meta shares in the pre-opening.

The move underscores Zuckerberg's push to turn 2023 into the "Year of Efficiency," with cost cuts promised from $5 billion in expenses to between $89 billion and $95 billion.

A deteriorating economy has triggered a series of massive job cuts across corporate America: from Wall Street banks such as Goldman Sachs and Morgan Stanley to 'Big Tech' companies including Amazon.com and Microsoft.

The tech industry has laid off more than 280,000 workers since the beginning of 2022, with about 40% of them coming this year, according to the website layoffs.fyi.

Meta, which is investing billions of dollars to build the futuristic metaverse, has been struggling against a post-pandemic drop in advertising spending by companies facing high inflation and rising interest rates.

Meta's move in November to reduce headcount by 13% marked the first mass exits in its 18-year history. Its headcount stood at 86,482 at the end of 2022, 20% more than a year ago.

Share this article

Leave a Reply

Your email address will not be published.