Meta To Commence First Round of Layoffs in 2023 This Week
The social networking giant could lay off as many as 4,000 employees working in technical roles.
- Meta may axe up to 4,000 technical employees this week.
- The company may also continue laying off thousands of more employees in business roles in May.
Meta may go ahead with another round of mass layoffs this week. According to an internal memo posted yesterday which was obtained by Vox, the layoffs are expected to begin today, i.e., Wednesday, April 19.
Another source confirmed to Vox that the social networking giant could part ways with as many as 4,000 employees. Technical teams working across nearly all major Meta properties, i.e., Facebook, Instagram, Reality Labs, and WhatsApp, could bear the brunt of the layoffs.
The second round of layoffs at Meta comes more than five months after the company offloaded 11,000 employees to usher in what CEO Mark Zuckerberg Zuckerberg described as the “year of efficiency” at the company.
While the company is scheduled to present its Q1 2023 earnings on April 26, 2023, it is no secret that Meta has suffered from waning revenue and profits, thanks to decreased spending and higher inflation in an uncertain macroeconomic environment last year and the introduction of App Tracking Transparency in iOS in April 2021.
In 2022, Meta earned $116.609 billion in revenue, 1% below 2021’s $117.929 billion. Even more concerning for the company is that it extracted only $23.2 billion in profits in 2022, which is 41% less than $39.37 billion in 2021. At the same time, Meta’s operating expenses surged by 23% year-over-year in 2022.
Meta’s market capitalization has plummeted from over $1 trillion in September 2021 to $240.73 billion in November 2022. The company is valued at $558.97 billion as of April 19, 2023.
In the memo, Lori Goler, Meta’s head of people, wrote, “This will be a difficult time as we say goodbye to friends and colleagues who have contributed so much to Meta. It will take time for everyone — both those leaving and those staying — to process tomorrow’s news, and I know teams will show up for each other with compassion, support, and care.”
The memo also advised employees to work from home on Wednesday to give “space to process the news” to those who will be handed pink slips.
As of December 31, 2022, Meta’s headcount stood at 86,482. Subtract 11,000 and an additional 4,000, leaving the company with over 72,000 employees.
But that’s not where Meta employees’ woes end. In March, Zuckerberg said the company is looking at restructuring that could impact 10,000 jobs. The company is expected to carry out more layoffs in May this year.
However, the May layoffs could see people departing from the company’s business side, as opposed to now, wherein those in technical roles are getting the axe.
Layoffs.fyi data indicates that five hundred and ninety-six companies laid off 171,308 employees in 2023 so far compared to 164,511 (by 1,056 companies) in 2022.
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