Meta lay-offs continue, with 10,000 job cuts eyed anew
The newest Meta job cut followed 11,000 positions being culled by the company in November 2022.
Meta announced a new wave of job cuts on Tuesday. This came as part of the company's "year of efficiency," as CEO Mark Zuckerberg called it since the US tech sector continues to downsize.
Zuckerberg said in an email sent to the employees that Meta would shed 10,000 jobs over the next few months. The cuts would target middle management. In addition, 5,000 other roles would remain unfilled.
The cut followed 11,000 positions being culled by the company in November 2022. Similar waves of job cuts were witnessed across big tech companies, such as Amazon, Google, and Microsoft.
Read more: Google cuts 12,000 jobs amid nationwide tech layoffs
"This will be tough and there's no way around that. It will mean saying goodbye to talented and passionate colleagues who have been part of our success," Zuckerberg said.
Big tech companies went on a hiring spree to meet high demand during the coronavirus pandemic. As such, the first victims will be Meta's recruitment department.
After a few months, tech and business departments will be affected, and "in a small number of cases, it may take through the end of the year to complete these changes," Zuckerberg said.
Meta founder warned that more pain was coming when he told analysts that the company's "management theme for 2023 is the 'Year of Efficiency.'" The CEO plans to make the company stronger.
A rough patch
Meta went through a rough patch last year amid a souring economic climate, forcing advertisers to cut back on marketing.
"For most of our history, we saw rapid revenue growth year after year and had the resources to invest in many new products. But last year was a humbling wake-up call," Zuckerberg wrote.
"I think we should prepare ourselves for the possibility that this new economic reality will continue for many years."
Meta made a huge gamble on the metaverse, which Meta believes will be the next frontier online.
"Zuckerberg promised investors that 2023 would be a year of efficiency for Meta and he needs to make good on that," said Insider Intelligence analyst Jasmine Enberg.
Enberg expressed that Meta is aware of its need to downplay its farfetched and costly metaverse ambitions.
In an early analysis, Zuckerberg showed that engineers collaborating in person with colleagues were found to be more efficient than those working remotely.
He said the company was "focusing on understanding this further," but that "in the meantime, I encourage all of you to find more opportunities to work with your colleagues in person."
Last year's issues lowered the company's share prices by two-thirds. The stock later on recovered in 2023. Meta's share prices went up by almost six percent after announcing the latest job cuts.
Read more: Meta in hot water amid dropping stocks, as users flee, sales plunge
Meta's chief executive said he will make their organization flourish by removing multiple layers of management.
"A leaner organization will execute its highest priorities faster. People will be more productive, and their work will be more fun and fulfilling," said Zuckerberg.