Meta to Cut Jobs in Next Round of Layoffs : Bloomberg Report

Meta to Cut Jobs in Next Round of Layoffs : Bloomberg Report

According to a recent report by Bloomberg, Facebook’s parent company Meta is planning another round of mass layoffs that could result in thousands of employees losing their jobs.

The layoffs are expected to occur as early as next week before CEO Mark Zuckerberg goes on parental leave for the birth of his third child. This latest round of layoffs comes on the heels of Meta reducing its workforce by 13% or approximately 11,000 employees in November 2022.

The global economic slowdown and an impending recession have adversely affected the tech industry, which has led to decreased profit margins for many companies, including Meta, the world’s largest social networking company. As a result, Meta is feeling the pressure to cut costs and streamline its operations, leading to these layoffs.

Meta to Cut Jobs in Next Round of Layoffs : Bloomberg Report

It is important to note that this is not the first time Meta has faced employee layoffs. In 2020, the company had to pay $5 billion as part of a settlement with the Federal Trade Commission for privacy violations, which led to job cuts in the legal and policy teams. Moreover, with the increasing scrutiny on social media platforms and the potential for further regulation, Meta may be preparing itself for a challenging future.

The planned layoffs at Meta result from the challenging economic climate faced by the tech industry and the company’s efforts to optimise its operations. However, the move also underscores the company’s vulnerability and the need for strategic measures to mitigate risk and maintain its position in the highly competitive social media market.

New layoffs at Meta

Mark Zuckerberg had previously hinted at further job cuts at Meta, stating that the company aimed to become more streamlined. He acknowledged the unpredictable nature of the industry, saying that he could not guarantee job security in the future. However, he also indicated that he believed the company was currently in a position where job cuts were necessary.

Zuckerberg has designated 2023 as the “year of efficiency,” and the company has reportedly given subpar ratings to employees in recent performance reviews. It is speculated that this is a strategic move to facilitate the upcoming layoffs and ensure a smooth process.

A spokesperson for Meta quoted in the Wall Street Journal, “The company has always had a culture of setting goals and striving for high performance, and its review process is intended to encourage employees to think long-term and produce high-quality work while receiving constructive feedback.”

However, Meta is not alone in announcing mass layoffs. Other major companies such as Amazon, Google, and Microsoft have significantly reduced their headcount, with Amazon cutting 18,000 jobs, Google cutting 12,000 jobs, and Microsoft cutting 10,000 jobs.

Several other companies, including Twitter, HP, Goldman Sachs, Phillips, Adobe, Lyft, and Coinbase Global, have collectively laid off over 14,000 employees.