Meta has executed a new round of layoffs this Wednesday, announced by the company last February, when it confirmed that it was going to lay off 10,000 more employees, in two successive rounds that would take place at the end of April and the end of May. These layoffs are added to the 11,000 that the company already carried out last November, and on this occasion there have been 6,000 the dismissed, who join the nearly 4,000 in April. So, the elimination of jobs affected more teams related to technology and recruiting.
This round has mainly affected positions related to the business and its development, from departments such as operations, project management, marketing, policies, communications and risk analytics. The layoffs are part of what the company has called its “efficiency year,” a period in which Meta is undergoing a large-scale restructuring to cut costs and slim down its organizational structure. In addition to these layoffs, Meta has frozen hiring for some 5,000 jobs it had open.
According to Mark Zuckerberg, CEO of Meta, the layoffs that are being carried out in the business groups will constitute the third and last great round in the group. Of course, it is possible that they will not be the end of the layoffs this year, although if they do take place, they will affect a much smaller number of positions. In total, the company is going to lay off 25% of its workforce, keeping around 66,000 workers, as long as it does not make additional hires.
Apparently, this strategy of layoffs and cost reduction is already beginning to yield the results that Meta wanted, as shown by its results for the first three months of 2023. Between January and March, its revenues rose 3% year-on-year, giving thus the return to a trend registered during the last three quarters in a row, in which their income had fallen.
Despite this, Meta’s reported profits for the period were down by almost a quarter compared to the same period a year earlier. As for the price for advertising, it also fell, 17% compared to the first quarter of 2022.