On Tuesday, Meta announced plans to lay off an additional 10,000 jobs and face restructuring costs estimated to be between $3 billion and $5 billion. CEO Mark Zuckerberg warned that the company could continue to experience economic instability for several years.
"Here's the timeline you should expect: over the next few months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates," Zuckerberg wrote in an email to employees.
Zuckerberg mentioned that Facebook's parent company intends to eliminate 5,000 open positions that are not filled. Acknowledging the constant economic uncertainty, he advises companies to prepare for the possibility that this new economic reality may persist for several years.
Meta's latest wave of layoffs comes on the heels of another round of cuts, which was announced in November and impacted over 11,000 employees, equivalent to approximately 13% of the company's total workforce.
Mark Zuckerberg has presented 2023 as the "year of efficiency" for the company, with the objective of transforming the organization into a more agile and resilient entity.
During a February meeting with analysts, Zuckerberg stated that Meta intends to eliminate underperforming projects and those that may no longer be essential. At the same time, the company aims to streamline decision-making by reducing layers of middle management.
Meta persists in investing billions of dollars in the development of virtual reality and augmented reality technologies necessary for constructing the metaverse, a digital universe. The company's Reality Labs division, responsible for creating the metaverse, recorded a loss of around $13.7 billion in 2022 despite earning $2.16 billion in revenue