Meta has started its latest round of layoffs with a focus on technical workers, who are typically thought of as more immune to job cuts in Silicon Valley. The company previously announced that it would cut another 10,000 jobs in the coming months.
The company plans to cut more jobs in its business groups in May. Members of the company’s sustainability, well-being, user experience, news feed, and messaging teams were among those affected by yesterday’s layoffs, according to public LinkedIn posts.
As part of the layoffs, Meta has reportedly told North American employees to work from home on Wednesday in anticipation of the cuts. The layoffs are the second significant round of job cuts at Meta, with the company announcing in November 2022 that it would eliminate approximately 13% of its workforce, or 11,000 jobs, in the largest round of cuts in its history.
The layoffs are part of Meta’s “year of efficiency” as the company attempts to engineer a turnaround following repeated revenue declines, heightened competition, concerns about user growth, and significant losses in its Reality Labs division.
Meta CEO Mark Zuckerberg has also taken responsibility for over-hiring earlier in the pandemic when there was strong demand for the company’s products and online advertising, which dropped off somewhat once the world reopened.
With the 10,000 job cuts announced last month, Meta’s headcount will fall to around 66,000, a total reduction of about 25%. Zuckerberg said last month that, in some cases, it may take through the end of this year to complete its staff restructuring processes.
Meta is set to report earnings for the first three months of 2023 next week, during which Wall Street analysts expect it to post its fourth straight quarterly decline in revenue and a more than 30% decline in profits. Despite this, Meta’s shareholders appear to have been reassured by Zuckerberg’s plans for efficiency, with the company’s shares up more than 70% year-to-date as of midday Wednesday.
The latest round of layoffs at Facebook’s parent company, Meta, has started with a focus on technical workers. While tech workers are usually thought of as more immune to job cuts in Silicon Valley, Meta’s restructuring efforts have led to job losses in this area.
Nkechi Nneji, a spokesperson for Meta, confirmed to CNN that some previously announced layoffs were taking place on Wednesday. This announcement follows CEO Mark Zuckerberg’s notice in March that the company would cut another 10,000 employees in the coming months.
Meta’s recruiting team was also notified of additional layoffs last month, with further cuts to the company’s business groups expected to take place in late May.
This latest round of job cuts marks the second significant layoff at Meta. As of September 2022, Meta reported a headcount of 87,314. With 11,000 job cuts announced in November and the 10,000 announced last month, Meta’s headcount will fall to around 66,000, a total reduction of about 25%.
As the technology industry continues to evolve, Meta’s efforts to pivot toward the metaverse and streamline its operations will likely continue to impact its workforce. While the latest round of layoffs may be difficult for those affected, the company’s leadership believes that these changes will ultimately help it achieve its long-term goals.
