Meta has started its third round of layoffs as part of a comprehensive plan to reduce costs and streamline operations. The latest round of job cuts targets employees within Meta"s business groups, following a previous round of layoffs in April that affected technical roles. With 21,000 job cuts since November 2022, Meta aims to enhance its efficiency, adapt to economic challenges, and navigate a weakened digital advertising market.
The initial round in November 2022 impacted 11,000 employees. And the second round in March 2023 affected approximately 4,000 workers. So, around 10,000 workers will lose their jobs due to the combined layoffs in April and May.
The most recent cuts, which were confirmed on LinkedIn by affected employees, include individuals in user experience, marketing, recruiting, and engineering roles. Meta declined to comment specifically on the recent layoffs but referred to a previous announcement by CEO Mark Zuckerberg regarding cuts to the company"s business groups commencing in late May.
The ongoing restructuring efforts are part of Meta"s overarching strategy to become a more agile company. Mark Zuckerberg emphasized the necessity of these measures, attributing them to the company"s long-term vision and a drive for improved business performance.
In April, Meta reported a 3% increase in first-quarter revenue compared to the previous year, amounting to $27.91 billion. This growth followed three consecutive periods of declining revenue.
Despite the positive revenue trend, Meta"s Reality Labs unit, responsible for developing virtual reality and augmented reality technologies, incurred an operating loss of $3.99 billion in the first quarter while generating $339 million in revenue.
Meta remains committed to investing heavily in the metaverse. The company"s dedication to developing virtual reality and augmented reality technologies underscores its long-term vision for the future.
Investors have responded positively to Meta"s major cost-cutting efforts, with the company"s shares surging by 177% from under $89 in November to $264.74. Despite the layoffs, Meta"s financial performance and strategic focus on the metaverse have resonated positively with investors.
Source: CNBC