Meta, WSJ: company ready for a new wave of layoffs

Informed sources told the business daily that Facebook’s owner is planning new cuts in the coming months that could be of the same size as the layoffs in November. Last year the company cut 11,000 employees, 13% of the total. The projects of the metaverse division are at risk

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Meta, the company that owns Facebook, is planning a new wave of layoffs in the coming months that could eventually be the same size as the maxi cut implemented in November. This was reported by informed sources to the Wall Street Journal. The new cuts, the first tranche of which is expected to be announced next week, will hit “non-engineering” roles particularly hard. In conjunction with the layoffs, the sources said, several projects will be downsized or closed, including those carried out by Reality Labs, the Meta division that deals with the metaverse. The company cut 11,000 employees last year, 13% of its total, in what was the largest wave of layoffs in its 18-year history.

The new cuts in Zuckerberg’s company

Rumors in this sense had also arrived in recent days. The new cut to the workforce is linked to the financial targets that Meta has set itself and should precede Zuckerberg’s parental leave, expected shortly for the birth of the third child. The cuts are part of the road outlined by Zuckerberg himself for his company. On the occasion of the quarterly results, the CEO defined 2023 as “the year of efficiency” with Meta focused on eliminating projects that are not performing well or are no longer crucial, as well as becoming leaner and more agile in decisions by removing different levels of middle managers.

Industry layoffs

If the November cuts have been a cold shower for Facebook employees, the new cut is somehow expected given the difficult context in which Meta finds itself operating between a leap in expenses, a drop in sales and the persistent slowdown in advertising collection. However, Meta is not the only one in Silicon Valley to downsize. Many Big Techs have cut jobs and are reviewing their investments, from Google to Twitter. The latest in chronological order was Amazon: the online sales giant temporarily suspended the construction of its headquarters in Virginia, which it had announced in 2017, sparking a race among the major American cities to win the ambitious project, the investments and the promised thousands of jobs.