• In November 2020, Meta (Facebook’s parent company) undertook its largest-ever downsizing, laying off more than 11,000 employees.
• Meta Platforms is now contemplating a new round of layoffs and performance appraisals are being conducted.
• Meta expects its 2023 spending to range between $89 billion and $95 billion, according to CEO Mark Zuckerberg.
Facebook’s Parent Company Undergoes Largest Downsizing
Last November, Facebook’s parent company, Meta, undertook its largest-ever downsizing, laying off more than 11,000 employees. This was part of CEO Mark Zuckerberg’s strategy to reduce expenses and bring the 2023 spending down between $89 billion and $95 billion.
New Round Of Layoffs Expected
It appears that other staff will soon be given the pink slip as well. The Financial Times reported on Saturday that Meta Platforms has put off finalizing the budgets of numerous teams as the company contemplates a new round of layoffs. In the last few weeks, there was a lack of clarity on budgets and future headcount, the Financial Times disclosed citing two Meta employees familiar with the matter. Layoffs are anticipated to occur in March after employee performance appraisals have been conducted by the firm.
Costly Terminations For The Company
The impending terminations are costly for the company; three current and former employees of Meta who requested anonymity said that severance and other employee related costs amounted to $975 million on Meta’s balance sheet or an average of $88000 per terminated employee.
CEO Addresses Difficult Decision To Reduce Workforce Further
During a recent earnings call, Zuckerberg addressed this difficult decision: “I said clearly that this was the beginning of our focus on efficiency and not the end,” Zuckerberg said referencing mid-term cost reduction plans which included flattening organizational structures across different departments such as Instagram Whatsappand Facebook while sparing Metaverse positions from termination at least initially.
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