Meta, the parent company of Facebook, is shedding another company CEO Mark Zuckerberg announced Tuesday that it will cut 10,000 workers, or roughly 12% of its workforce, in order to cut costs and boost efficiency.
“The past year was a modest wake-up call. The global economy has changed, competitive pressures have grown, and our growth has slowed dramatically,” Zuckerberg said in a statement. statement Shared with employees and Posted on Facebook Tuesday morning. “At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years.”
That round of layoffs at Meta, which is also the parent company of Instagram and WhatsApp, will begin on Wednesday. Zuckerberg said that due to the company’s recent hiring freeze, some recruiters will be let go immediately.
Zuckerberg said the company next plans to announce layoffs for tech groups in late April and business teams in May.
In the statement, Zuckerberg said that over the next few months, leaders at the company will announce restructuring plans that focus on “leveling out” meta organizations, eliminating “lower priority” projects, and reducing staffing rates.
After cuts, meta She predicts layoffs and restructuring efforts will save the company $3 billion, According to regulatory filings.
The company also said it no longer plans to fill the current 5,000 vacancies.
Zuckerberg says less is more
The latest wave of layoffs comes months after the company announced its biggest headcount cuts since 2004, in the wake of a hiring spree fueled by rapid growth during the pandemic.
In November, the company cut 11,000 jobs, or about 13% of its workforce at the time, amid an industry-wide slowdown to limit losses..
That approach appears to have worked — at least according to Zuckerberg, though he’s previously said he watched “Layoffs as a last resort. “
“Since we reduced our workforce last year, one of the surprising results has been that a lot of things have gone faster,” he said in a statement on Tuesday. “A smaller organization will implement its highest priorities faster. People will be more productive, and their work will be more enjoyable and fulfilling.”
The job cuts also come at a time when Meta is looking to ramp up artificial intelligence, as competition heats up.
“Our single largest investment is developing artificial intelligence and embedding it in every one of our products,” Zuckerberg said.
Meta is currently in a race for AI dominance over other big tech companies.
Google unveiled its Bard chatbot earlier this year after Microsoft revealed that it had invested billions of dollars in the company behind ChatGPT, an AI chatbot that revolutionized the online world.
But these companies have not escaped the pain of what increasingly looks like a major backsliding in technology as well.
In January, Google laid off 12,000 workers, or about 6% of its global workforce, days after Microsoft announced it would lay off 10,000 employees, or about 5% of its total staff — a cut that included all team members. Responsible for ensuring ethical AI practices. This revelation was first reported by Curriculum Monday.
“This is going to be tough and there’s no way around it,” Zuckerberg said. “It will mean saying goodbye to the talented and passionate colleagues who have been a part of our success.” “They have dedicated themselves to our mission and I am personally grateful for all of their efforts.”