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Business News/ News / World/  Facebook owner Meta starts final round of layoffs
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Facebook owner Meta starts final round of layoffs

Meta in March became the first Big Tech company to announce a second round of mass layoffs, after showing more than 11,000 employees the door in the fall

FILE PHOTO: Meta Platforms Inc (REUTERS)Premium
FILE PHOTO: Meta Platforms Inc (REUTERS)

Meta Platforms Inc on Wednesday started a fresh round of layoffs, as part of its plan to cut 10,000 jobs across all its platforms- WhatsApp, Instagram, and Facebook. This is the second round of layoffs after the tech firm laid off around 11,000 employees in November 2022. The fresh round of layoffs has decreased the company's number of employees to a level similar to that of around mid-2021, after a period of extensive recruitment that resulted in the doubling of its workforce since 2020.

The employees affected by the layoffs took on to LinkedIn to share the news and this round of layoffs is expected to cut deeply into the ad sales, marketing, and partnerships teams.

In March, Mark Zuckerberg, the Chief Executive of Meta, stated that the majority of the company's layoffs in the second round would occur in three distinct phases spanning several months, with the process mostly concluding in May. Additionally, he mentioned the possibility of smaller rounds of layoffs continuing after that timeframe.

The overall impact of these cuts was predominantly felt in non-engineering positions, further highlighting the importance of individuals involved in coding and programming at Meta. In March, Zuckerberg made a commitment to significantly reorganize the company's business teams and strive towards achieving a more optimal balance between the number of engineers and employees in other roles.

During a company town hall meeting, executives revealed that even within the technology teams, the company prioritized eliminating non-engineering positions such as content design and user experience research to a greater extent. Mark Zuckerberg mentioned during the town hall that approximately 4,000 employees were laid off in April, which followed a smaller reduction in recruiting teams that took place in March.

Meta's decision to implement layoffs came as a result of several factors, including a decline in revenue growth over several months, influenced by both high inflation and a reduction in digital advertising due to the waning impact of the pandemic-driven e-commerce surge.

Furthermore, Meta has been investing significant amounts of money, totaling billions of dollars, into its Reality Labs division, which focuses on the development of the metaverse. However, this unit incurred a substantial loss of $13.7 billion in 2022. Additionally, Meta has been undertaking a project to enhance its infrastructure to effectively support artificial intelligence initiatives.

(With agency inputs)

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Updated: 24 May 2023, 06:58 PM IST
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