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According to Bloomberg news, Meta (Facebook) will cut 10,000 more employees in its second round of layoffs, and remove 5,000 vacancies in the next 6 months.
Business Insider (BI) reports that this “bloodbath” of founder Mark Zuckerberg will continue over the next 6 months to improve the “efficiency” of the corporation amid economic difficulties.
In a statement dated March 14, 2023, Meta CEO Mark Zuckerberg said that 2023 will be a year of efficiency to improve business results and financial position. With such a goal, the company will reduce staffing, cancel less important projects and limit recruitment.
Previously in November 2022, Meta had laid off 11,000 employees, or 13% of its employees, as a “last resort” in the words of Mark Zuckerberg, although the company still achieved more than 116 billion USD in revenue and 23rd profit. $1.1 billion last year.
“This is a difficult decision and there is no other way,” CEO Mark Zuckerberg said in the second dismissal.
The irony is that most of the people who were fired were in the recruitment team, which was the area that was fired the most in the first “bloodbath” in November 2022.
“At this point, we should be prepared for the possibility that the current difficult economic situation will continue for many years to come. High interest rates make the economy perform better, geopolitical uncertainty leads to more conflicts, more regulation will slow growth, and increase the cost of technological innovation. Given that situation, we need to be more efficient than before to be successful,” Mark Zuckerberg said on Facebook.
With this cut, Meta’s headcount will be close to where it was 2 years ago. However, this move stimulated investors when Meta shares gained more than 5% in session 14/3.
While the first layoff in November 2022 surprised many people, this second “bloodbath” has been rumored internally since January 2023.
A BI source said that the fact that team leaders have to constantly evaluate the performance of low-level employees makes everyone understand what will come, especially when the company is looking for ways to cut costs.
Previously, Mark Zuckerberg said that Meta would not accept having too many “boss” in the company, thereby proposing a plan to eliminate a series of management levels in this empire to streamline the apparatus so that it works effectively. more fruitful. The old managers, if not fired, will also be transferred to the position of new employees to work.
“A lean organization will manage its priorities faster,” said Mark Zuckerberg.
Meta said it would lower operating costs to $86-92 billion thanks to staff cuts. This figure is lower than the previous target of $89-95 billion.
This large layoff is the result of a massive hiring process that thinks the Covid-19 pandemic will create new development opportunities for the technology industry. The world’s largest social network hired 30% more staff in 2020, 23% in 2021, and as of the November 2022 layoffs, Meta had more than 87,000 employees.
Similar to Meta, a series of technology companies such as Twilio, Dell, Zoom, and eBay recently said they would cut staff. In January 2023, Google announced plans to lay off more than 12,000 workers, Microsoft will eliminate 10,000 employees, Salesforce plans to fire 7,000 people.
*Source: Bloomberg, CNBC, BI, WSJ
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