meta The company said it will lay off more than 10,000 employees and incur restructuring costs of $3 billion to $5 billion. announced On Tuesday, CEO Mark Zuckerberg warned that economic instability could continue “for years.”
Meta shares closed 7% higher on Tuesday.
In a message to employees, Zuckerberg said, “Here’s the timeline you should expect: Organizational leaders should focus on flattening the organization, discontinuing low-priority projects, and reducing hiring rates. We will announce our restructuring plans in the coming months.” Posted on the tech company’s blog.
He added that Facebook’s parent company plans to close 5,000 additional open roles that have yet to be filled. Zuckerberg agreed that economic uncertainty will continue, saying the company needs to prepare for “this new economic reality could last for years.”
Facebook Chairman and CEO Mark testifies before the House Financial Services Committee on the Investigation into Facebook and its Impact on the Financial Services and Housing Sectors on October 23, 2019 at the Rayburn House Office Building in Washington, D.C. Zuckerberg.
Mandel Gunn | AFP | Getty Images
and SEC filing When announcing the cuts, Meta also said it expects its total expenses in 2023 to be cut from $86 billion to $92 billion.
The new job cuts affected more than 11,000 employees, following the previous cuts announced in November. This represents approximately 13% of Meta’s total staff.
Zuckerberg has touted 2023 as the company’s “year of efficiency,” with the company looking to become a “stronger, more agile organization.”
“We are a technology company and our ultimate output is what we build for people,” Zuckerberg said. As part of the restructuring, the company will also increase the number of direct reports each manager has.
Zuckerberg told analysts in February that Meta would “reduce projects that are not being executed or may no longer be important” while also “reducing middle management to make decisions faster.” He said he planned to “remove the layer of
In Zuckerberg’s message, “lean organizations are able to deliver on their top priorities faster.
Yet Meta spent billions of dollars developing the virtual and augmented reality technologies needed to build the digital universe, creating the Metaverse. His Reality Labs division of the company responsible for creating the Metaverse said in 2022 he lost about $13.7 billion against $2.16 billion in revenue.
Amazon announced new layoffs in January, affecting 18,000 employees across multiple divisions.
Twilio, Dell, Zoom, and eBay have also recently announced significant staff cuts. In January, Google revealed plans to lay off more than 12,000 of his employees, Microsoft announced plans to cut his 10,000 employees, and Salesforce plans to cut his 7,000 jobs. announced.
— CNBC’s Ashley Capoot contributed to this report.
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