March 16, 2023
In a memo announcing another 10,000 job cuts, Mark Zuckerberg described the near future for Meta employees as challenging.
In Silicon Valley, Meta has been battling headwinds such as a dwindling digital advertising sector, Apple’s new privacy policy, the rapid emergence of artificial intelligence technologies, and the rise of TikTok. As part of his “year of efficiency,” Zuckerberg is making significant organizational changes, including flattening the company by removing multiple layers of management.
The latest layoffs follow the November layoff of approximately 11,000 employees, which marked the company’s first-ever workforce reduction. Despite the difficulties, Zuckerberg believes that drastic changes are required to survive in a deteriorating economy. In less than a year, Meta will have reduced its workforce by approximately 24%, or one in every four employees. Zuckerberg has stated that he wishes to flatten the company “by removing multiple layers of management.”
However, the layoff announcements have lowered morale at Meta, with worried employees wondering if they will be next. The question now is whether Meta will emerge from this period stronger, or whether it will continue to decline slowly.
Zuckerberg indicated that drastic changes are required to survive in what he described as a deteriorating economy that will not soon recover. “At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years,” Zuckerberg flatly warned. The job cuts will not be complete until the end of May. He went ahead to tag it “A challenging period.”
The sources for this piece include an article in CNN.
