RT.com
14 Mar 2023, 23:55 GMT+10
CEO Mark Zuckerberg warned that the "new economic reality" could last many years
Facebook's parent company Meta will cut 10,000 of its global workforce in the coming months, CEO Mark Zuckerberg announced in an open letter to staff on Tuesday. This follows similar cuts in November which saw more than 11,000 workers laid off, or about 13% of its entire staff.
Zuckerberg also informed Meta's workforce that the company is to close 5,000 open roles that have not yet been filled, as he cautioned about the "possibility that this new economic reality will continue for many years." Meta's share price rose by more than 5% following the news.
"This will be tough and there's no way around that," Zuckerberg wrote in the lengthy post. The measures, he explained, come amid an overall drive for a so-called "year of efficiency" in 2023 in which the organization will streamline its key services in order to make the business "stronger and more nimble." Layoffs will begin in late April.
Explaining the decision, Zuckerberg wrote that he was satisfied by how Meta's objectives "had gone faster" since November's layoffs and of his belief that a "leaner org will execute its highest priorities faster." He also concluded that staff who survive the cull "will be more productive."
The cuts come after Zuckerberg said in February that Meta planned on cutting elements of its business which were deemed to be underperforming, as well as removing "layers of middle management."
Meta has continued, however, to fund its ambitious virtual reality and augmented reality technologies. The 'Metaverse' virtual reality platform designed by the company's Reality Labs subdivision is estimated to have lost in excess of $13.7 billion last year.
Meta's cuts follow similar moves announced recently by some of the biggest names in the global tech sector, including Amazon, Zoom and eBay. Google said in January it was to cut 12,000 jobs, in the same month that Microsoft announced that 10,000 employees were to be laid off.
Get a daily dose of Business Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Business Sun.
More InformationWASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
NEW YORK CITY, New York: Financial markets kicked off the week on a cautious note as President Donald Trump rolled out a fresh round...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
CULVER CITY, California: TikTok is preparing to roll out a separate version of its app for U.S. users, as efforts to secure a sale...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
Nearly 2,000 jobs in the executive branch dealing with foreign policy are reportedly on the chopping block The US State Department...
New Delhi [India], July 11 (ANI): The recall of Chinese employees from the Foxconn India factory, which manufactures Apple iPhones,...