(CTN News) – According to Facebook CEO Mark Zuckerberg, the company’s parent company Meta will be laying off 10,000 employees, or about 12% of the company’s workforce, in an effort to streamline its operations.
In a statement shared with employees and posted to Facebook, Zuckerberg said last year was a humbling wake-up call. The world economy changed, competitive pressures increased, and our growth slowed significantly.
Considering this new economic reality, I think we should prepare ourselves to live with it for many years to come.
In this round of layoffs, Instagram and WhatsApp are not the only two companies cutting jobs. Meta is also cutting jobs. Due to the company’s latest hiring freeze, Zuckerberg has confirmed that recruiters will be laid off as soon as possible.
Zuckerberg said the company will announce layoffs for technology groups in late April and for business teams in May.
Zuckerberg announced that the company would announce restructuring plans to “flatten” Meta’s organizations, cancel “lower priority” projects, and reduce hiring rates in the coming months.
The layoffs and restructuring efforts are expected to save Meta $3 billion following the cuts.
Also, the company announced that it would not be filling 5,000 currently vacant positions.
According to Zuckerberg, less is more
Following a hiring spree fueled by rapid growth during the pandemic, the company announced its largest reduction in staff since 2004.
The company cut 11,000 jobs in November as part of a general slowdown across the industry to curb losses that were taking place.
In spite of previously saying he viewed layoffs as a last resort, Zuckerberg seems to have found success with that approach.
“One of the unexpected results of our reduced workforce last year is that many things have moved faster than they used to,” he said. As an organization becomes leaner, its priorities will be met at a faster rate as it becomes leaner. It will result in more productivity and a better work environment for people.”
Furthermore, Meta is looking to put more resources into artificial intelligence, an area of intense competition.
“We are investing the most in improving AI and building it into every product we build,” Zuckerberg said.
Meta is currently competing against other Big Tech companies in the AI race.
Microsoft announced earlier this year that it had invested billions of dollars in a company behind ChatGPT, an AI chatbot that has taken the internet by storm.
The decline in technology hasn’t spared these companies, either.
In January, Google laid off 12,000 workers, or about 6% of its global workforce, just days after Microsoft announced it would lay off 10,000 employees, or about 5% of its total staff – including members of its ethical AI team. Platformer first reported that revelation Monday.
We have no choice but to say goodbye to talented and passionate colleagues who have contributed to our success, Zuckerberg said. We are grateful for all their efforts, and they have dedicated themselves to our mission.”