Meta Platforms , Facebook parent said Tuesday it would cut 10,000 jobs, sJust four months after laying off 11,000 employees, the first big tech company to announce a second round of mass layoffs.
“We hope to reduce our team size to around 10,000 people and close around 5,000 additional open positions that we haven’t hired yet,” Chief Executive Mark Zuckerberg said in a message to staff.
The layoffs are part of a broader restructuring at Meta that will see the company flatten its organizational structure., cancel lower-priority projects and lower your hire rates as part of the move. The news sent Meta shares up 2% in premarket trading.
The move underscores Zuckerberg’s drive to make 2023 the “Year of Efficiency” with promised cost cuts of $5bn in spending to between $89bn and $95bn.
The deteriorating economy has led to a series of massive job cuts at corporate America: from banks from Wall Street like Goldman Sachs and Morgan Stanley to big tech firms including Amazon.com and Microsoft.
The tech industry has laid off more than 280,000 workers since the start of 2022, with about 40% of them arriving this year, according to layoff tracking site layoffs.fyi.
Meta, which is investing billions of dollars to build the futuristic metaverse, has struggled with a post-pandemic drop in ad spending from companies facing high inflation and rising interest rates.
Meta’s decision in November to reduce the workforce at 13% marked the first mass layoffs in its 18-year history. His workforce was 86,482 at the end of 202220% more than a year ago.
