Goal lay off 10,000 more workers and incur restructuring costs ranging from $3 billion to $5 billion, the company Announced on Tuesday, with CEO Mark Zuckerberg warning that economic instability could continue for «many years.»
Meta shares rose 5.5%.
«Here’s the timeline to look forward to: Over the next few months, organizational leaders will announce turnaround plans focused on flattening our organizations, canceling lower-priority projects, and lowering our hire rates,» Zuckerberg said in a message to employees, which was also published on the Meta blog.
He added that the company plans to close an additional 5,000 open positions that it has not yet filled. In a nod to continued economic uncertainty, Zuckerberg said the company should prepare for «the possibility that this new economic reality will continue for many years to come.»
in a filing with the SEC In announcing the cuts, the company also said it anticipated a reduction in total spending in 2023 from $86 billion to $92 billion.
New round of layoffs follows round of cuts Announced in November that affected more than 11,000 workers, which was equivalent to approximately 13% of Meta’s total workforce.
Zuckerberg has presented 2023 as the «year of efficiency» for the company, in which the company aims to become «a stronger and more agile organization.»
“We are a technology company and our bottom line is what we build for people,” Zuckerberg said. As part of the restructuring, the company will also increase the number of direct reports each manager has.
Zuckerberg told analysts in February that Meta plans to «cut projects that aren’t working or are no longer critical» while also «removing layers of middle management to make decisions faster.»
“A more agile organization will execute on its highest priorities faster,” Zuckerberg’s message read.
Yet Meta continues to spend billions of dollars developing the virtual reality and augmented reality technologies needed to build the digital universe called the metaverse. The company’s Reality Labs division tasked with creating the metaverse lost about $13.7 billion in 2022 on $2.16 billion in revenue.
Amazon Announced a new round of layoffs in January, affecting 18,000 employees across multiple divisions.
Twilio, Dell, Zoom and ebay also recently revealed important cuts in your workforce. In January, Google revealed plans to lay off more than 12,000 workers, Microsoft announced plans to cut 10,000 employees and Sales force he said he planned cut 7,000 jobs.
Ashley Capoot, CNBC contributed.