Facebook and Instagram parent company, Meta is working on another round of layoffs that could affect thousands of its current employees.
According to a Bloomberg report citing people familiar with the matter, Meta is eliminating more workers in its bid to become a more efficient organization.
As a result of that, the company is said to have been working to flatten its organization, giving buyout packages to managers and cutting whole teams it deems nonessential.
Meta which last November slashed its workforce by 11,000 is expected to officially announce the latest round of layoffs any time this week.
Financial target: The report stated that the imminent round of cuts is being driven by financial targets and is separate from the “flattening.” Meta, which has seen a slowdown in advertising revenue and has shifted focus to a virtual-reality platform called the metaverse, is said to have been asking directors and vice presidents to make lists of employees that can be let go, the people said.
Quoting a source from the company, Bloomberg reported that those working on the plan are hoping to have it ready before Chief Executive Officer Mark Zuckerberg goes on parental leave for his third child, which may be imminent.
While the November layoffs came as a surprise, insiders said the next of downsizing has been widely anticipated by the Meta workforce. Zuckerberg has dubbed 2023 Meta’s “year of efficiency,” and the company has been communicating that theme to employees during performance reviews completed last week.
Early warnings: Zuckerberg had previously warned staff that 2023 will be a ‘year of efficiency’ and this ethos has been drilled into them at team meetings and in performance reviews.
On Thursday, Meta announced it was shutting its New Product Experiment, a unit that was created in 2019 to create new consumer-focused apps.
While announcing what came as the biggest layoffs last year in the tech industry and the company’s first major layoffs, Meta said that it would also be cutting discretionary spending and extending its hiring freeze through Q1 2023, meaning that the company will not be hiring until after the stated period.
Zuckerberg in a message to Meta’s staff shared in the Meta Newsroom said that aside from the layoffs, the company was taking several other measures to cut costs.
He hinted that the company had over-invested at the start of COVID-19 and now making efforts toward correction.