Facebook parent Meta is resorting to a new round of layoffs as part of its “year of efficiency” agenda, as it plans to cut costs in 2023.
Meta Platforms (NASDAQ: META) is reportedly preparing for a new round of layoffs expected to take place in March. However, how many people the tech conglomerate intends to let go this time remains unknown.
Inside sources ascribe the planned Meta layoffs to a lack of clarity regarding budgets and the company’s future headcount. According to people familiar with the matter, Meta’s lack of clarity is apparent, with staff observing that only little work gets done. Furthermore, managers at the multinational tech company have been unable to make proper plans due to the absence of concrete budgets. These sources claim that specific budgets, usually finalized by the end of the year, are still in various stages of formulation.
In addition, critical decisions that typically require no more than a few days to sign off on now routinely extend to months. As one employee succinctly described Meta’s current operational state of affairs:
“Honestly, it’s still a mess; the year of efficiency is kicking off with a bunch of people getting paid to do nothing.”
As Meta continues to tweak its budgets for multiple teams, its CEO Mark Zuckerberg plans to cut jobs to contain costs this year. In a previous earnings call, Zuckerberg dubbed 2023 Meta’s “year of efficiency” as the company takes a more prudent operational approach. Zuckerberg said that their “management theme for 2023 is the ‘Year of Efficiency,’ and we’re focused on becoming a stronger and more nimble organization.”
This cost-effective approach also entails eliminating low-priority and low-performance roles in addition to “removing some layers in middle management” to expedite decision-making.
Meta Staff Demoralized by Impending New Layoffs Following Last November Downsizing
According to three employees, much of Meta’s staff is demotivated and demoralized by the impending job cuts and general operational uncertainty. Nonetheless, Meta remains determined to bring costs under control and improve its outlook following its commendable Q4 results. For last year’s fourth quarter, the tech giant saw its market cap increase by $88 billion while shares soared 18%.
Last November, Meta downsized its global staff force by 13%, which affected around 11,000 employees. The layoffs were a record high for the tech giant and impacted numerous departments, with business and recruiting teams the worst hit. At the time, Meta also added that its hirings suspension would extend into early 2023, minus a small number of exceptions.
Touching on Meta’s trimmed headcount for this year, Zuckerberg explained at the time:
“In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
Furthermore, the Meta CEO also suggested several more employees might quit the company due to its leaner and more demanding operational approach.
“I think some of you might decide that this place isn’t for you and that self-selection is OK with me. Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg stated last November.
In other recent Meta news, the company announced the departure of chief business officer Marne Levine following 13 years of service.