February 19, 2024 Mark Zuckerberg, CEO of Meta, attributes the series of tech layoffs in 2024 primarily to companies adjusting to post-pandemic realities and striving for a leaner workforce following a period of aggressive hiring during the COVID-19 pandemic.
According to Zuckergberg, companies, including Meta, expanded their workforces significantly during 2020 and 2021, driven by the boom in ecommerce and digital services as global lockdowns shifted consumer and business behaviors online.
Zuckerberg further stated that the pandemic’s effects stabilizing and businesses returning to pre-pandemic norms, many organizations recognized the need to reassess their financial and operational strategies, leading to widespread layoffs as part of an effort to become more financially sustainable and agile.
Meta conducted four rounds of layoffs between November 2022 and May 2023, affecting thousands of employees. These decisions, described as difficult by Zuckerberg, were influenced by economic uncertainties and aimed at creating a more efficient, leaner organization.
The question of whether advancements in artificial intelligence (AI) and automation have contributed to recent layoffs has been prominent. While companies like SAP and Cisco cited generative AI development and the automation of roles as reasons for their workforce reductions, Zuckerberg indicated that AI was not a major factor in Meta’s layoffs. Instead, the focus was on addressing overexpansion and pursuing operational excellence.
The trend of layoffs has continued into 2024, affecting thousands across the tech industry. Data from Layoffs.fyi highlights over 39,000 job cuts in just January and February, suggesting that more layoffs could be on the horizon as companies continue to streamline operations in response to economic pressures and strategic reassessments.
