Meta, the parent company of social networks Facebook and Instagram, will cut another 10,000 jobs after an initial wave of 11,000 layoffs in early November, group number one Mark Zuckerberg announced Tuesday. .
Additionally, Zuckerberg said in a statement that the Menlo Park, Calif.-based giant has removed 5,000 currently vacant positions from its organizational chart and will not fill them.
The first to be affected is the company’s human resources department. This is to officially end a string of jobs the big tech company made as it expanded its operations to meet high demand during the coronavirus pandemic.
Zuckerberg said technology and business units will also be affected in the coming months, and “in a small number of cases, it may take until the end of the year to complete these changes.”
The Facebook co-founder and visible head of the social network said 2023 will be a “year of efficiency” for Meta, with a focus on achieving a “stronger and more agile organization.” I had already warned the moon.
These two massive cuts of about 26,000 positions will result in Meta cutting its staff by 24%. This is her 180-degree shift in policy, as the group had never initiated layoff plans in its nearly two decades of existence.
For Zuckerberg, the decision is justified to “make (Meta) a better technology company” and to “improve financial results in a challenging environment.”
In addition to layoffs, the company also plans to “cancel low-priority projects” if it slows the pace of hiring, Zuckerberg added.
The group had already announced a hiring freeze until the end of March 2023.
Facebook, which became meta at the end of 2021, has been struggling with a slump in online advertising since last year after seeing extraordinary growth since its inception. This is a trend highlighted by changes in the iPhone operating system (iOS) that have made the platform unable to collect data on as many users as before, and rising interest rates that are unfavorable to sector technology. It needs a lot of money to fund its development.
Additionally, Facebook and Instagram are facing increasing competition, especially from video platform TikTok, which is shrinking their market share.
The problems facing Meta caused its share price to drop more than 60% in 2022, but its value has partially recovered since early 2023 thanks to Zuckerberg’s promise to redirect management.
In 2022, Meta billings will shrink 1% to $116.6 billion.
On the stock market, Meta’s share price jumped another 5% after the latest job cut announcement.