Meta Plaforms Inc (NASDAQ: META)
A new round of layoffs at Meta Platforms, Inc. (NASDAQ:META), which could affect thousands of employees, is being considered for implementation in the months to come.
Following the elimination of 11,000 jobs, which represented approximately 13% of the company’s workforce in November, Zuckerberg attempted to reassure workers that he did not “anticipate more layoffs.” However, the company went ahead and eliminated the jobs anyway.
But back in February, Zuckerberg made a promise to investors that he would streamline Facebook’s decision-making process and reduce the number of middle managers. He also left the door open for additional layoffs.
According to the Washington Post, which cited a person familiar with the matter, Meta now intends to move some leaders into lower-level roles without direct reports, flattening the layers of management between top boss Mark Zuckerberg and the company’s interns.
In response to a request for comment from Reuters, Meta declined to provide a statement; however, a spokesperson for the company, Andy Stone, cited several previous statements made by Zuckerberg that suggested additional cuts were on the way.
At the beginning of this month, Zuckerberg addressed investors and stated that the layoffs from the previous year were “the beginning of our focus on efficiency and not the end.” He promised that one of his priorities would be “flattening our organizational structure and eliminating some layers of middle management.”
The layoffs that took place the year before were the first ever in Meta’s 18-year history. Other technology companies, such as Google’s parent company Alphabet Inc., Microsoft Corp.(NASDAQ:MSFT), and Snap Inc.(NYSE:SNAP), have also eliminated thousands of jobs.
As their teams grow, it’s possible that other managers will wind up being responsible for a greater number of employees. Meta also considered eliminating certain projects and jobs altogether.
During the COVID pandemic, Meta made significant hiring efforts in order to meet the growing demand for social media usage among consumers who were confined to their homes. However, business was not as successful in 2022 as a result of advertisers cutting back on spending in response to rapidly increasing interest rates.
The value of Meta has decreased from more than one trillion dollars to its current level of $446 billion. On Wednesday, Meta shares experienced a loss of approximately 0.5%.
In order to bring costs under control, the company has announced that it will decrease the amount of office space it occupies, cut spending on discretionary items, and maintain a hiring freeze until 2023.
According to a report published by an employment firm called Challenger, Gray & Christmas Inc., in the month of January, companies in the United States announced plans to lay off more than 100,000 employees, the majority of which were at technology companies.
Additionally, Meta reorganized its top leadership positions. After 13 years with the company, Chief Business Officer Marne Levine announced her plans to step down in February.
The decrease in digital spending, the privacy restrictions implemented by Apple Inc. (NASDAQ:AAPL), and the competition from the short-form video network TikTok all had a negative impact on Meta’s advertising business.
At the time of the most recent check on Wednesday, the price of META shares had fallen by 0.20%, reaching $171.74.
Featured Image: Unsplash © Dima Solomin
