In a recent update to its Meta employees, Mark Zuckerberg shared the goals of their company to improve the financial performance during the difficult environment with the company’s long term vision.
Meta Firing 10000 Employees
According to him, “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.
With less hiring, I’ve made the difficult decision to further reduce the size of our recruiting team.
We will let recruiting team members know tomorrow whether they’re impacted.
We expect to announce restructurings and layoffs in our tech groups in late April, and then our business groups in late May.
In a small number of cases, it may take through the end of the year to complete these changes.”
Further adding, “Our timelines for international teams will also look different, and local leaders will follow up with more details.
Overall, we expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired.”
He clarified that “I also recognize that the idea of upcoming org changes creates uncertainty and stress.
My hope is to make these org changes as soon as possible in the year so we can get past this period of uncertainty and focus on the critical work ahead.”
He said that this will be tough and there’s no way around that as it will mean saying goodbye to talented and passionate colleagues who have been part of our success.
More Hiring After Restructuring
After this restructuring, the technology conglomerate plans to lift hiring and transfer freezes in each group.
They also aim to have a steady stream of developer productivity enhancements and process improvements throughout the year.
The company’s main focus is to build a better technology company while keeping technology the main thing and investing in tools to get more efficient.
Earlier, Meta announced that in the three months to December 2022, earnings were down 4% year-on-year.
Still, they managed to make a profit of more than $23bn over the course of 2022.
In addition to that Mr Zuckerberg cited higher interest rates in the US, global geopolitical instability and increased regulation as some of the factors affecting Meta, and contributing to the slowdown.
Technology Companies Struggling To Make A Balance
In the meantime, the companies like Google and Amazon, have been grappling with how to balance cost-cutting measures with the need to remain competitive.
Amazon announced it planned to close more than 18,000 jobs at the start of this year, due to “the uncertain economy” and rapid hiring during the pandemic.
Following the similar trends, Google’s parent company Alphabet also made 12,000 cuts.
So far in 2023, there have been more than 128,000 job cuts in the tech industry, according to layoffs.fyi, which tracks job losses in the tech sector.