Excerpt
Facebook owner Meta to cut 10,000 jobs in second round of layoffs
March 14, 2023.
Meta Platforms has announced it will slash a further 10,000 jobs in a second round of mass layoffs as the Big Tech industry braces for a deep economic downturn.
The Facebook-parent company said on Tuesday that it will reduce the size of its recruiting team and make further cuts in its tech groups in late April, and then its business groups in late May.
Meta has been engaged in a wider restructuring that will also see the United States-based company scrap hiring plans for 5,000 openings, cancel lower-priority projects and flatten layers of middle management.
“This will be tough and there’s no way around that,” CEO Mark Zuckerberg said in a message to staff. “It will mean saying goodbye to talented and passionate colleagues who have been part of our success.”
Zuckerberg said he believed “this new economic reality will continue for many years”.
Worries of an economic downturn due to rising interest rates have sparked a series of mass job cuts across corporate America: from Wall Street banks such as Goldman Sachs and Morgan Stanley to Big Tech firms including Amazon and Microsoft.
Meta, which is pouring billions of dollars to build the futuristic metaverse, has struggled with a post-pandemic slump in advertising spending from companies worried about the economic outlook.
Early last month, the company posted falling profits and its third consecutive quarter of declining revenue.
In response, Zuckerberg promised to turn 2023 into the “Year of Efficiency”. With the latest move, Meta expects expenses in 2023 to come in between $86bn and $92bn, lower than the $89bn to $95bn forecast previously.
The company’s shares jumped 6 percent in early trading on the news of the widely anticipated job cuts.
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