March 8, 2023
Meta is reportedly planning another round of layoffs that could affect thousands of employees.
The layoffs could begin as early as this week, adding to the 13% of Meta employees who were laid off as part of a major cost-cutting plan announced in November.
The upcoming round of cuts is being driven by financial targets and is distinct from the “flattening,” according to the people, who asked not to be identified because they were discussing internal matters. According to the people, Meta, which has seen a slowdown in advertising revenue and has shifted its focus to a virtual-reality platform called the metaverse, has asked directors and vice presidents to create lists of employees who can be let go.
In February, Meta CEO Mark Zuckerberg stated that the company will prioritize efficiency in 2023 as it continues to invest in the metaverse and artificial intelligence. Advertisers are cutting back on spending due to economic uncertainty. einsteineruploaded with. Those working on the plan hope to have it ready before Chief Executive Officer Mark Zuckerberg goes on parental leave for his third child, which could happen soon, according to one source.
In a November blog post, Zuckerberg stated that the company increased hiring during the pandemic as people spent more time shopping online and using social media. However, the increase in online activity was short-lived, and the company also faced other challenges, such as the economic downturn and increased competition from the short-form video app TikTok.
Simultaneously, the company has attempted to invest more in the metaverse, or virtual spaces where people can work, play, and socialize. Part of that focus includes the company’s new $1,500 Meta Quest Pro virtual reality headset, which debuted in October.
Meta’s stock rose 1.7% in premarket trading in New York on Tuesday. Since the beginning of the year, the stock has increased by 54%.
The sources for this piece include an article in DataCenterKnowledge.
