Meta Announces 6000 Job Cuts Next Week

Breaking news can be a powerful way to raise brand awareness; unfortunately, breaking news also often means layoffs.

Lyft announced two rounds of layoffs totalling 209 employees in late February. Morgan Stanley likewise reported cutting 3,000 jobs (mainly banking and trading roles), multiple outlets reported.

What’s Happening Next Week?

If you work for Meta, there's a good chance that their latest round of layoffs could impact you. The tech company plans on cutting thousands of employees, with this process set to start this week.

Executives at the company will send notice to employees expected to be laid off, providing information such as when the process will start and whether or not severance packages will be available to them.

Sources have reported that Meta's layoffs will focus on employees from its various technology groups - social media, news feed and user experience teams among them - who work on social media. CEO Mark Zuckerberg has placed pressure on his employees to perform and revenue growth hasn't met his expectations.

Meta is taking steps beyond layoffs to reduce staff perks and overall budgets in what Zuckerberg refers to as the "Year of Efficiency," designed to save the company money while creating flexibility for their virtual reality plans. Investors have become disenchanted with Meta due to its ever-increasing expenses; therefore they hope these cost cuts will help turn around its fortunes.

Meta is making these cuts due to a decline in demand for their services during the pandemic. Many employees were hired at peak demand, yet that demand has subsided since world reopened. Furthermore, they face rising competition as well as significant losses within their Metaverse division.

Meta's overhiring may also be contributing to this decline; while hiring was spurred on by digital advertising and online commerce boom, that trend no longer holds. Furthermore, Meta has invested significantly in artificial intelligence research.

Meta has also been embroiled in disputes with music publishing companies regarding royalties for its content. SIAE, a European music rights organization, claims Meta made an inequitable "take it or leave it" economic offer which threatened to remove music from its service if rejected - this has caused widespread consternation within the music industry, and how this disagreement will be settled remains unclear.

Meta’s Next Round of Layoffs

Meta, the parent company of Facebook, Instagram, WhatsApp and Reality Labs is reported to be planning massive layoffs this week and next month in both technical and non-technical roles.

Technical workers in Silicon Valley tend to be safe from job cuts, but Meta has recently been cutting jobs across its platforms this year. CEO Mark Zuckerberg promised in March to eliminate 10,000 positions at Meta. Technical teams working on all major apps offered by Meta may face being laid off; including news feed, messaging and user experience teams. Many will likely be laid off from abroad offices of Meta; others could face termination at home in their home countries. Many employees of Meta have taken to LinkedIn or Blind to announce they were let go this week - including one expectant mother who posted about being let go days prior to going onto maternity leave!

The recent wave of cuts are part of Zuckerberg's "Year of Efficiency" for Meta, designed to cut projects that do not align with its core strategy and reduce overall spending. Furthermore, non-profitable projects will be eliminated and spending reduced overall.

Meta employees received early morning emails this week informing them they may have been affected by layoffs. Around 1000 of those in the U.K. where Meta is headquartered were told they could lose their job as the result of "business decisions". Employees affected will receive 16 weeks severance pay and benefits coverage up to one year post-employment.

Reports indicate that those affected staff will be asked to remain until a suitable replacement leader for their teams can be identified, according to reports. Those remaining must work longer hours and focus on covering for those laid off; since the pandemic began, approximately 50% of employees have already been let go from this company.

Preparing for the Layoffs

Meta is expected to start its major round of layoffs this week, according to multiple sources who work there. The facial recognition software company may let go as many as 4,000 employees according to Vox - this follows on the heels of smaller dismissals which affected about 11,000 workers last November.

Sources indicate that CEO Mark Zuckerberg's goal for Meta is to make it "leaner and more efficient," by cutting jobs and cancelling low-priority projects, consolidating office space, reducing travel expenses, identifying individuals in teams who might require additional support and reporting them in an internal system - with engineering managers given an deadline this week to report such cases.

Meta has discontinued paying for certain perks it once believed essential to attracting talent, including nonessential trips being cancelled and its free laundry service ending. Furthermore, dinner service has been moved later into the evening in an attempt to reduce worker loading up on food to take home; and free snacks provided through "micro-kitchens."

As it restructures, Meta will cease hiring for all 5,000 open positions and close offices that are no longer necessary. Furthermore, sources indicate that Meta plans to terminate lease agreements on several Bay Area offices.

Meta's spokesperson declined to comment on planned layoffs, but has informed employees in the past of its challenges. Their advertising business is suffering due to https://richpeoplemall.com privacy rules; digital advertisers have increasingly turned towards platforms like TikTok and YouTube which provide greater transparency regarding where ad dollars are spent; while its social media platform is competing fiercely with Instagram and Snapchat; while virtual-reality division is no longer growing as quickly.

Meta's cuts will be "tough for all," according to its spokesman, but they're necessary as the company strives to weather this downturn. Mr. Toufouad took personal responsibility for its problems and pledged for more efficiency going forward.

What to Expect

An extensive round of layoffs will have lasting repercussions for employees both personally and professionally, potentially impacting their finances, ability to find new work in the future and potentially signalling changes to a company's business strategy with potential implications across an industry.

Facebook parent Meta is reported to be set for large-scale layoffs starting next week, potentially impacting thousands of workers worldwide. Meta has experienced difficulty with its core business and has not experienced significant increases in revenue; as such, the decision to reduce staff is likely made with both employees and shareholders in mind.

Meta has not publicly addressed these reports; however, according to Bloomberg a representative for Meta stated that they are exploring "ways we can become more efficient and serve customers better". Furthermore, affected staffers would be assisted in finding employment elsewhere through working closely with Meta or seeking new opportunities themselves.

Sources have reported that Facebook will lay off employees in its business departments, such as those working on social media platforms and Reality Labs' virtual reality division. This decision follows an anticipated decrease in online ad sales; further declines could also be reported at next week's first-quarter earnings call.

Employees have already expressed their fear and anxiety regarding layoffs on social media. One employee posted an image showing herself drinking whiskey to drown her sorrows; another wrote that she would be let go just two days before starting her maternity leave. While no details have been confirmed by the company on severance packages for those being let go, most expect similar packages like what the rest of its workforce enjoy.

Meta's planned layoffs are just the latest example of companies cutting their workforces. Other tech titans, including Google and Shopify, have announced plans to lay off large numbers of employees this year; and finance firms such as Morgan Stanley have reduced positions and cut salaries as part of restructuring their businesses.