Meta, parent company of Facebook, on Tuesday announced that it would cut 10,000 jobs. It had just been four months since the company had laid off 11,000 employees, making it the first Big Tech company to announce such mass layoffs repeatedly.
Chief Executive Officer Mark Zuckerberg said in a message to staff, “We expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired.”
According to Meta, these layoffs are to cancel projects with imperatively low priority, and to restructure Meta widely to see the company flatten its organizational structure, as well as reduce its hiring rates. This decision made the shares of Meta to a surge of 2% in premarket trading.
With planned cost reductions of $5 billion in expenses to between $89 billion and $95 billion, Zuckerberg is attempting to make 2023 the “Year of Efficiency,” and this action highlights his efforts.
A series of massive layoffs have occurred across corporate America as a result of the weakening economy, from Wall Street banks like Goldman Sachs and Morgan Stanley to Big Tech companies like Amazon.com and Microsoft.