Meta plans another round of layoffs that could affect thousands of workers, according to a Bloomberg News report published on 6 March 2023, Monday evening. The job cuts could start this week and be another round of layoffs. In November, 13% of Meta’s workers were let go because of a big plan to cut costs.
Facebook parent Meta planning thousands more layoffs as soon as this week – Bloomberg
— BNO News Live (@BNODesk) March 7, 2023
A Meta spokesperson told CNBC they would not comment on the report. Meta CEO Mark Zuckerberg has previously indicated that the social networking giant would concentrate this year on efforts to lower the company’s costs, pitching 2023 as the “Year of Efficiency.”
He told analysts in February that Meta is focused on “cutting projects that aren’t performing or may no longer be crucial” and that it plans on “removing layers of middle management to make decisions faster.”
The consumer technology company is trying to cut costs at a tough time. During the fourth quarter, its costs and expenses rose 22% from last year to $25.8 billion, while its overall sales went down 4% to $32 billion.
Meta’s main online advertising business is still having trouble because of a tough digital advertising market, the effects of Apple’s 2021 iOS privacy update, and more competition from TikTok, which is owned by ByteDance.
In the meantime, the company keeps putting a lot of money into developing the metaverse, which Meta thinks could be the next big thing in computing.
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During the fourth quarter, the company’s Reality Labs division, which is in charge of building the virtual reality and augmented reality technologies needed for the metaverse, made $727 million in sales but also had an operating loss of $4.28 billion.
As the fact Mention above-
Zuckerberg has said that he would “take accountability” for the company’s previously announced cost-cutting plans, saying that he views layoffs as a last resort.
We’re restructuring teams to increase our efficiency, Zuckerberg said last fall when Meta announced layoffs. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.
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