Meta planning more layoffs: FT

We recently saw several big tech companies announcing staff layoffs. Examples abound. When Elon Musk bought Twitter, he immediately let 4000+ (or half) of the staff go. Meta (previously Facebook) also announced layoffs in November, 13% of the workforce, or 11,000 people, lost their jobs. In January, IBM dismissed 3,900 and Google 12,000 or 6% of its workforce. There are more examples, including Zoom, eBay and others. Are there alternatives? Unfortunately, when the market contracts and a company suddenly loses earnings, the logical thing to do is to look at the cost base, and most often, employee costs are at the top of the list. Recently, Tim Cook, the CEO of Apple, and the top management of Apple took 50% pay cuts to prevent Apple from laying off some of their staff. Certainly an excellent example of a company that sees more value in retaining its staff. The question remains. When there is a downturn, how do you cut costs? Where do you focus?? There are alternatives to cutting staff. Reducing executive compensation, putting promotions and increases on hold, reducing working hours, furloughing employees and accelerating retirement are viable alternatives. But one should not be penny-wise and pound-foolish and keep cutting the remaining people's remuneration until all the good people have left.? It is essential to demonstrate complete buy-in at all levels when it gets tough. Executives must show that they are helping to save money, or they will lose the goodwill of the remaining employees, and eventually, the company will fail. Have you been a victim of a cost-cutting exercise? Would you have handled it differently if you were in the driving seat? #Technology #TechLayOffs #BigTech #Leadership #DataVoice

We recently saw several big tech companies announcing staff layoffs. Examples abound. When Elon Musk bought Twitter, he immediately let 4000+ (or half) of the staff go. Meta (previously Facebook) also announced layoffs in November, 13% of the workforce, or 11,000 people, lost their jobs. In January, IBM dismissed 3,900 and Google 12,000 or 6% of its workforce. There are more examples, including Zoom, eBay and others. Are there alternatives? Unfortunately, when the market contracts and a company suddenly loses earnings, the logical thing to do is to look at the cost base, and most often, employee costs are at the top of the list. Recently, Tim Cook, the CEO of Apple, and the top management of Apple took 50% pay cuts to prevent Apple from laying off some of their staff. Certainly an excellent example of a company that sees more value in retaining its staff. The question remains. When there is a downturn, how do you cut costs? Where do you focus?? There are alternatives to cutting staff. Reducing executive compensation, putting promotions and increases on hold, reducing working hours, furloughing employees and accelerating retirement are viable alternatives. But one should not be penny-wise and pound-foolish and keep cutting the remaining people's remuneration until all the good people have left.? It is essential to demonstrate complete buy-in at all levels when it gets tough. Executives must show that they are helping to save money, or they will lose the goodwill of the remaining employees, and eventually, the company will fail. Have you been a victim of a cost-cutting exercise? Would you have handled it differently if you were in the driving seat? #Technology #TechLayOffs #BigTech #Leadership #DataVoice

Facebook parent Meta Platforms Inc has delayed finalizing the budgets of multiple teams as it prepares a fresh round of job cuts

Zuckerberg has figured out the benefit of addition by subtraction, using tech to reduce staff and still get the work done. Smaller companies will benefit from their talent being available to hire now.

Rudimentary…but maybe these are the calculations Zuck is making to justify his “Year of Efficiency” 2019 revenue = $70.7 billion 44942 employees = $1.57 million per employee. 2022 revenue = $116.6 billion 86482 employees = $1.3 million per employee A 20% difference. 20% “less efficient” The silver lining to the “tech layoffs”? Folks are being (painfully) reminded, it’s not personal…it’s just business. ?? https://lnkd.in/geb-nUMF “Facebook parent Meta Platforms Inc (META.O) has delayed finalizing the budgets of multiple teams as it prepares a fresh round of job cuts, the Financial Times reported on Saturday.”