Meta, formerly known as Facebook, is reportedly preparing for another round of layoffs as part of its ongoing downsizing and restructuring efforts. The Washington Post reports that the company may trim up to 10,000 jobs, following its previous layoffs in November 2022, which saw around 11,000 employees being let go.
According to an internal memo by Lori Goler, Meta’s head of human resources, the latest layoffs will impact employees on technical teams across various departments, including Facebook, WhatsApp, Messenger, Instagram, and the virtual reality division, Reality Labs.
The exact size of the layoffs and their impact on Meta’s operations in India are not yet confirmed. However, the company has already cut around 13% of its workforce and extended a hiring freeze through the first quarter. The downsizing comes as Meta reported a decline in net income, a 1% decrease in revenue, and a 23% increase in costs and expenses for the year ended December 31, 2022.
At the Q4 2022 earnings call, Meta’s CFO, Susan Li, said that the company ended the quarter with over 86,400 employees, including the majority of those impacted by the previous layoffs. Li added that the majority of affected employees would no longer be part of Meta’s reported headcount figures by the end of Q1 2023.
Mark Zuckerberg, the CEO of Meta, has said that 2023 will be a “year of efficiency” for the company. As part of this, he plans to flatten the company’s organizational structure and remove layers of middle management to make decisions faster. He also aims to use AI tools to help engineers be more productive and cut projects that are no longer crucial.
The latest reports of layoffs come as Meta is set to announce its Q1 2023 results on April 26. The company has given guidance of an $89-95 billion full-year expense for 2023, lower than its previous guidance of $94-100 billion, primarily due to slower-than-anticipated growth in payroll expenses. Additionally, Meta has lowered its capital expenditure outlook for 2023 from $34-37 billion to $30-33 billion, reflecting a lower data center construction spend during the year.
In summary, Meta’s downsizing efforts and the possibility of further layoffs reflect the company’s plans to improve its efficiency and cut costs. However, the impact of these measures on the company’s operations and employees remains to be seen.
