Meta, the parent company of Facebook, is set to start a company-wide layoff on Wednesday as it restructures teams to achieve greater efficiency.
Meta, the parent company of Facebook, is set to start a company-wide layoff on Wednesday as it restructures teams to achieve greater efficiency, according to a memo seen by Bloomberg News. The job cuts will impact Facebook, WhatsApp, Instagram, and Reality Labs, which is the unit responsible for virtual reality efforts and Quest hardware. The move is part of a cost-cutting effort that will eliminate 10,000 positions at the company, as announced by founder Mark Zuckerberg in March. Another round of cuts is set to follow in May.
Last November, Meta had already cut about 13 per cent of its workforce or around 11,000 jobs. The company also extended its hiring freeze throughout the first quarter, and other Silicon Valley businesses have taken similar cost-cutting measures. Zuckerberg has stated that the company aims to become leaner and rebalance its ratio of technologists and engineers to business and administrative staff.
The memo circulated to managers suggests that teams will be reorganized, and remaining employees will be reassigned to work under new managers. To give employees time to process the news, Meta will ask all North American employees who can work from home to do so on Wednesday.
A company spokesperson declined to comment on the matter, but referred to Zuckerberg’s post in March, where he referred to it as the “year of efficiency” and said that the company would announce restructurings and layoffs in its tech groups in late April, followed by its business groups in late May.
The layoff is part of Zuckerberg’s effort to streamline the company’s operations, improve efficiency and focus on its core businesses. The social media giant has faced criticism over its handling of user data and the spread of misinformation on its platform. Zuckerberg has said that the company’s focus is to build a “privacy-focused social platform” and that he plans to invest more in its messaging and e-commerce businesses.
The layoff will impact thousands of employees and their families, and many will be left without work during a difficult time. However, the move is necessary for the long-term success of the company, and Zuckerberg has said that he will provide support to affected employees, including severance packages and job placement services. The layoffs are also part of a larger trend in the tech industry, as companies look for ways to cut costs and improve profitability in a highly competitive market.