Despite having announced the layoff of around 11,000 employees around four months ago, it seems that in Goal they haven’t had enough, and have confirmed the departure of another 10,000 employees from the company. In addition, Mark Zuckerberg himself, CEO of Meta, has added that they are not going to fill 5,000 more positions They currently have vacancies.
Zuckerberg has also indicated that the company is going to cancel all the projects that they consider to be low priority, to which he added that he had overestimated the indirect costs that are associated with them. He has also assured that for them this will be “the year of efficiency«. Thus, by the end of 2023, Meta will have dispensed with approximately a quarter of the workforce that he had when the end of 2022.
Meta has confirmed that it expects the next changes and restructuring in its IT groups and teams to begin next April. Later, the restructuring will begin for the groups and teams that are more dedicated to business. According to Zuckerberg himself, “in a small number of cases it may take until the end of the year to complete the changes«.
The manager has also stressed that the dates for the restructuring of the teams outside the United States will be different, and it will be those responsible in each region and countries who offer more details to employees on how they will be carried out.
In a communication sent to the Securities and Exchange Commission, Meta has indicated that it expects its total expenses by 2023 to be between $86 billion and $92 billion, an amount it has lowered from a previous estimate of $95 billion. .
Many of these expenses will be related to various cost reduction measures associated with the announced restructuring. Among them are severance payments. On the other hand, Meta has indicated that when they finish with the planned restructuring, they will lift the hiring freeze in various groups and teams.
The company hasn’t been very specific about what Zuckerberg meant when he talked about low-priority projects. One of them is probably support for NFTs on Instagram and Facebook, which Meta has just removed. In addition, the CEO of the company has spoken about the possibility of “flattening” the structures of the divisions and areas that make up Meta. This may indicate that they are willing to eliminate several levels of management.
«It is clear that each layer of a hierarchy adds latency and risk aversion to information flow and decision making.“, he pointed out. «Each manager normally reviews the work, removing some blemishes before sending it further up the chain. In our Year of Efficiency, we will flatten our organization by removing several layers of management. As part of this, we will be asking many managers to become individual contributors. We will also have these individual contributors reporting at almost every level, not just the bottom. In this way, the flow of information between the people doing the work and management will be faster.«.
In addition to all this, Zuckerberg continues to ensure that what they are going to do is lay the foundations for the long term, and keep your focus on Artificial Intelligence and the metaverse. In the latter case, he continues to insist despite the opposition to it from the company’s shareholders, who do not believe that his development will bring the company the results that Zuckerberg believes. It does not seem, according to his statements, that he is going to listen to them. At least in the short term.
Nevertheless, it looks like your focus has changed slightlybecause it points out that the main investment priority today is «advance in Artificial Intelligence, and integrate it into all our products«. Zuckerberg notes that they have “the infrastructure to do it on an unprecedented scale«.
