Zuckerberg’s promise of “year of efficiency” at Meta likely to entail more job losses, according to media report
Meta Platforms could be about to conduct another round of layoffs, in addition to its previous announcement that it was axing 13 percent of its workforce.
That was Meta’s first -ever major layoff, and now according to a report on Monday on Bloomberg, Meta plans to layoff thousands more staff, as soon as this week.
This second round of cuts within four months is part of Meta’s efficiency drive after a tough 2022, after it contended with a post-pandemic slump in digital ads, coupled with heavy spending that unsettled some investors.
Year of efficiency
Last November Meta had announced it would let go 13 percent of its workforce, which translated into more than 11,000 employees.
CEO Mark Zuckerberg admitted at the time that that he mistakenly believed the surge of e-commerce and revenue growth seen at the start of the Covid pandemic, would continue post Covid.
Zuckerberg recognised investor concern in early February after Meta posted a notable decline in profits, coupled with a slight decline in revenues, which lead him to promise investors that 2023 will be a “year of efficiency”.
This was because Meta’s core online advertising business continued to face challenges from the tough digital advertising market, the lingering effects of Apple’s 2021 iOS privacy update, and increased competition from TikTok.
Two weeks ago the Washington Post reported that Meta was planning a fresh round of job cuts in a reorganisation and downsizing effort that could impact thousands of workers.
According to the Washington Post report, Meta planned to push some leaders into lower-level roles “to deflate the company’s hierarchy” and flatten the layers of management between Mark Zuckerberg and the company’s interns.
Now Bloomberg, citing people familiar with the matter, has reported that Meta is planning thousands of more cuts, which could begin as soon as this week.
A Meta spokesperson declined to comment to CNBC about the report.