Meta Platforms, the parent company of Facebook and Instagram, is likely to announce another major reorganization this week. According to insiders, Bloomberg news agency reports that thousands of employees will be laid off
Meta Platforms, the parent company of Facebook and Instagram, is likely to announce another major reorganization this week. According to insiders, Bloomberg news agency reports that thousands of employees will be laid off. That is the second large round of layoffs in a short time, because in November Meta already announced that it would cut 11,000 of the more than 87,000 jobs.
It comes as no surprise that after last year’s mass layoffs we have to intervene again. Recently, the American newspaper The Washington Post also reported that thousands more employees would have to leave. CEO Mark Zuckerberg said earlier that he did not expect any new job losses, but he also said that 2023 should be a “year of efficiency” and that Meta would focus more on profitability.
Also listen | Tech update: Instagram and Facebook also receive paid blue check marks
That Bloomberg thinks that Meta seems to be coming out with new budget cuts so soon after the November announcements, is related to Zuckerberg’s private life. The people working at Meta on the new round of layoffs reportedly hope to have the plan ready before the CEO goes on parental leave for his third child, who is on the way.
Investors have been complaining for some time that Meta was investing too much money in the metaverse, a virtual world where we’re all going to spend our time at some point if it’s up to Zuckerberg. Investments in this have also been scaled back.
Many big tech companies have announced mass layoffs in recent months as the economic outlook has become more bleak. For example, computer maker HP announced a round of layoffs of 6,000 jobs in November. Cisco Systems and IBM are both cutting about 4,000 jobs. Tens of thousands of jobs will also disappear at tech and web store group Amazon, Google owner Alphabet and software group Microsoft.