Facebook Chairman and CEO Mark Zuckerberg testifies before the House Financial Services Committee on “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors” within the Rayburn House Office Constructing in Washington, DC on October 23, 2019.
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Meta will lay off 10,000 more staff and incur restructuring costs starting from $3 billion to $5 billion, the corporate announced Tuesday, with CEO Mark Zuckerberg warning economic instability could proceed for “a few years.”
Shares of Meta were up about 5.5%.
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“Here’s the timeline it’s best to expect: over the subsequent couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” Zuckerberg said in a message to employees, which was also posted to the technology company’s blog.
He added that the Facebook parent plans to shut 5,000 additional open roles that it hasn’t yet filled. In a nod to continued economic uncertainty, Zuckerberg noted that the corporate should prepare for “the chance that this latest economic reality will proceed for a few years.”
In a SEC filing announcing the cuts, Meta also said it anticipated lowered total expenses in 2023, starting from $86 billion to $92 billion.
The brand new round of layoffs follows a previous round of cuts, announced in November, that affected greater than 11,000 staff, which equated to roughly 13% of Meta’s overall staff.
Zuckerberg has pitched 2023 as the corporate’s “yr of efficiency,” during which the firm goals to grow to be “a stronger and more nimble organization.”
“We’re a technology company, and our ultimate output is what we construct for people,” Zuckerberg said. As a part of the restructuring, the corporate may also increase the variety of direct reports each manager has.
Zuckerberg told analysts in February that Meta plans “on cutting projects that are not performing or may now not be crucial” while concurrently “removing layers of middle management to make decisions faster.”
“A leaner org will execute its highest priorities faster,” Zuckerberg’s message said.
Still, Meta continues to spend billions of dollars developing the virtual reality and augmented reality technologies required to construct the digital universe coined the metaverse. The corporate’s Reality Labs division that is tasked with creating the metaverse lost about $13.7 billion in 2022 on $2.16 billion of revenue.
Amazon announced a latest round of layoffs in January, impacting 18,000 employees across multiple divisions.
Twilio, Dell, Zoom and eBay also recently disclosed significant reductions to their workforce. In January, Google revealed plans to put off greater than 12,000 staff, Microsoft announced plans to chop 10,000 employees and Salesforce said it planned to cut 7,000 jobs.
— CNBC’s Ashley Capoot contributed to this report.
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