Facebook parent Meta platforms (meta) The process of laying off more workers began on Wednesday, as the company moves forward with what CEO Mark Zuckerberg called “the year of efficiency.” META stock fell on the news.
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As part of the latest round of job cuts announced in March, Meta has begun laying off employees in technical positions, CNBC reported. The report said these Restructuring and layoffs Will continue into May. With lower hiring overall, Zuckerberg said he’s also reducing the size of his recruiting team, according to a Vox Report.
The layoffs are part of a broader cost-cutting effort that will eventually eliminate more than 21,000 jobs, as previously announced in November and March.
META stock is down 1.2% near 215.25 during morning trading in the stock market today.
Zuckerberg said Meta has been leveling out the organization, canceling low-priority projects and slowing hiring. The job cuts include those who work on Facebook, Instagram, Reality Labs and WhatsApp.
META Stock: Sharp decline in advertising
Technology companies have announced tens of thousands of tech job cuts this year. Reasons include concerns about economic vulnerability, recession fears, and high interest, among others.
Facebook and other social media companies have also been hit hard by the sharp decline in digital advertising. This is happening as Facebook is spending billions on its risky “metaverse” bet. The metaverse is a virtual reality world that has yet to take hold.
In November, Mita cut 11,000 employees, or 13 percent of its workforce, and another 10,000 in March. Meta stock is up 136% since November when the company announced its first round of layoffs. At the time, Zuckerberg vowed to make 2023 the “year of efficiency” for the beleaguered social media giant.
Meta, like all social media companies, is struggling due to a sharp decline in advertising as the companies are strained by macroeconomic concerns.
Layoffs in the tech industry are the result of over-hiring that began in the mid-2020s. It was a time when tech companies were expecting consumers to go on a spending spree after the pandemic threats of Covid-19 lifted, but they failed to deliver.
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