Meta stated on Tuesday that it will lay off 10,000 more employees and incur restructuring expenditures of between $3 billion and $5 billion. CEO Mark Zuckerberg warned that the company’s financial difficulties may last for “many years.”
On Tuesday, shares of Meta ended 7% higher.
“Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” in a note to staff members that was also published on the blog of the tech company, Zuckerberg stated.
He continued by saying that the employer of Facebook intends to fill 5,000 extra available positions. Zuckerberg said that the business should get ready for “the possibility that this new economic reality will continue for many years,” in an apparent reference to the ongoing economic instability.
Meta stated that it projected lower overall expenses in 2023, ranging from $86 billion to $92 billion, in an SEC filing announcing the reduction.
The latest round of layoffs comes after a previous one in November that affected more than 11,000 employees, or nearly 13% of Meta’s whole workforce.
The company’s “year of efficiency,” according to Zuckerberg, is 2023, when it hopes to become “a stronger and more nimble organization.”
“We are a technology company, and our ultimate output is what we build for people,” according to Zuckerberg. The quantity of direct reports each manager has will also rise because of the restructure.
In February, Zuckerberg informed analysts that Meta intended “on cutting projects that aren’t performing or may no longer be crucial” while also“ “removing layers of middle management to make decisions faster.”
“A leaner org will execute its highest priorities faster,” according to Zuckerberg’s message.
The virtual reality and augmented reality technologies needed to create the virtual world known as the metaverse are still being developed by Meta at a cost of several billions of dollars. On $2.16 billion in revenue, the company’s Reality Labs division, which is in charge of building the metaverse, lost nearly $13.7 billion in 2022.
