Meta has been going through a rough patch in recent times. The company has been struggling with falling profits and declining revenue, and to counter this, it has initiated a series of layoffs that have affected thousands of its employees. The last round of layoffs at Facebook's parent company, Meta, began today according to inside information. There are speculations that it could affect about 6,000 people. This is not the first round of layoff as there have been a couple of layoff rounds before this. However, it appears that this will be the last for now. The first round took place in November last year while Meta CEO, Mark Zuckerberg announced the second round of layoffs in March this year.
This current layoff is part of a second round of layoffs announced in March. According to Mark Zuckerberg, the second round of layoffs would come in three batches. He also revealed at the time that the layoff will be complete by the end of May. In the tech department, Meta had laid off about 4,000 staff and now, it is laying off 6,000 people.
During the pandemic, Meta's workforce has sprung up as user demand for digital services rose sharply. In 2020, the first year of the pandemic, Meta's staff count grew by 30%. However, by 2021, this number grew again by another 23% in 2021. As of November 2022 when Meta did the first round of layoff, the company had about 87,000 staff. However, the two round of layoff will now cut the number to 66,000.
Meta's latest round of layoffs will mainly target its business units. This includes the ad sales, marketing and partnership teams. On LinkedIn, some Meta staff have stated that they have lost their jobs in the new round of layoffs.
History of Meta Layoffs
The First Round of Layoffs
In November 2022, Meta announced its first round of layoffs, which eliminated more than 11,000 jobs, or 13% of its workforce at the time. The layoffs were part of a restructuring effort aimed at streamlining the company's operations and cutting costs. Meta's CEO, Mark Zuckerberg, had assured employees that these layoffs would "minimize the chance of having to do broad layoffs like this for the foreseeable future." However, this turned out to be far from the truth.
The Second Round of Layoffs
In March 2023, Meta announced that it would cut 10,000 jobs this year, making it the first Big Tech company to announce a second round of mass layoffs. The widely-anticipated job cuts are part of a restructuring that will see the company scrap hiring plans for 5,000 openings, kill off lower-priority projects and "flatten" layers of middle management. Meta shares jumped 6% on the news.
The Third Round of Layoffs
In April 2023, Meta carried out another round of job cuts, this time hitting engineers and adjacent tech teams, as CEO Mark Zuckerberg further moved to streamline the business in a bid to make 2023 a "year of efficiency." These layoffs were part of the restructuring that Meta had announced in March and were expected to take place in three main batches over several months.
Impact on Employee Morale
The layoffs and absentee leadership, along with concerns that Mr. Zuckerberg is making a bad bet on the future, have devastated employee morale at Meta, according to current and former employees, as well as messages reviewed by The New York Times. Employees at Meta, which not long ago was one of the most desirable workplaces in Silicon Valley, face an increasingly precarious future. The company’s stock price has dropped 43 percent from its peak 19 months ago. More layoffs, Mr. Zuckerberg has said on his Facebook page, are coming this month.
Conclusion
Meta's layoffs have affected thousands of employees and have had a significant impact on the morale of the remaining workforce. The company's struggles with falling profits and declining revenue have forced it to take drastic steps to cut costs and streamline its operations. However, it remains to be seen whether these measures will be enough to turn Meta's fortunes around.
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