# Meta to cut 10,000 jobs in second round of layoffs
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Meta Platforms to Cut 10,000 Jobs: Biggest Tech Layoffs
Meta Description: Get the latest news on Meta Platforms' mass layoffs and restructuring plans, with Meta shares rising 6% on the announcement. Stay informed with Reuters.
URL: https://financedigest.com/meta-to-cut-10000-jobs-in-second-round-of-layoffshtml

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By Katie Paul and Nivedita Balu

(Reuters) -Facebook-parent Meta Platforms said on Tuesday it would cut 10,000 jobs this year, making it the first Big Tech company to announce a second round of mass layoffs as the industry braces for a deep economic downturn.

Meta shares jumped 6% on the news. The widely-anticipated [job cuts](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") are part of a restructuring that will see the company scrap hiring plans for 5,000 openings, kill off lower-priority projects and “flatten” layers of middle management.

They followed the company’s first mass layoff in the fall, which eliminated more than 11,000 jobs, or 13% of its workforce at the time, after a [hiring spree that doubled the employee](https://www.financedigest.com/lufthansa-launches-drive-to-hire-20000-employees.html "Lufthansa launches drive to hire 20,000 employees") count it had as of 2020.

Worries of an economic downturn due to rising [interest rates have sparked a series of mass job cuts](https://www.financedigest.com/interest-rates-are-cut-to-an-all-time-low-what-will-this-mean-for-small-businesses.html "Interest rates are cut to an all-time low. What will this mean for small businesses?") across corporate America in recent months. Tech [companies have led the way](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability"), shedding more than 290,000 workers since the start of 2022, according to tracking site Layoffs.fyi.

Meta’s purge of [employees has been one of the sector’s](https://www.financedigest.com/uk-employment-sector-set-for-huge-shift-over-1-5-million-people-to-trade-in-full-time-work-for-the-gig-economy.html "UK employment sector set for huge shift: Over 1.5 million people to trade in full-time work for ‘the gig economy’") most pronounced. On top of inflation woes, the company is also [facing down unique threats to its core digital](https://www.financedigest.com/3-top-digital-asset-threats-facing-your-brand-in-2017.html "3 top digital asset threats facing your brand in 2017") ads business while spending handsomely on Chief Executive Mark Zuckerberg’s plans to build a futuristic metaverse.

In a message to staff on Tuesday, Zuckerberg said most of the new cuts would be announced in the next two months, though in some [cases they would continue through the end](https://www.financedigest.com/shanghai-finds-cases-after-five-days-of-zero-covid-but-end-of-lockdown-on-track.html "Shanghai finds cases after five days of ‘zero COVID’ but end of lockdown on track") of the year.

For most of our history, we saw [rapid revenue growth](https://www.financedigest.com/synapse-appoints-new-finance-and-operations-manager-to-support-the-rapid-growth-of-the-business.html "Synapse appoints new Finance and Operations Manager to support the rapid growth of the business") year after year and had the resources to invest in many new products. But [last year](https://www.financedigest.com/over-50-of-businesses-increased-their-cyber-security-budget-last-year-amid-attacks.html "Over 50% of businesses increased their cyber security budget last year amid attacks") was a humbling wake-up call,” Zuckerberg wrote.

I think we should [prepare ourselves for the possibility that this new economic](https://www.financedigest.com/sme-productivity-programme-re-purposed-to-help-businesses-prepare-for-covid-19-economic-recovery.html "SME productivity programme re-purposed to help businesses prepare for Covid-19 economic recovery") reality will continue for many years.

Zuckerberg said he planned to further reduce the size of the [recruiting team](https://www.financedigest.com/cavendish-further-strengthens-its-leading-sell-side-ma-advisory-services-with-the-recruitment-of-duncan-chandler-as-head-of-its-financial-services-team.html "Cavendish Further Strengthens Its Leading Sell-Side M&A Advisory Services With The Recruitment Of Duncan Chandler As Head Of Its Financial Services Team"), which was already hard-hit in the fall layoffs. Restructurings in the tech group would be announced in late April and [cuts to business](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting") groups would come in May.

Meta also will remove multiple layers of management and ask many managers to become individual contributors, while eliminating non-engineering roles, automating more functions and at least partially reversing a commitment to “remote-first” work that Zuckerberg made amid [COVID-19 pandemic](https://www.financedigest.com/pandemic-restrictions-that-hampered-the-circulation-of-viruses-other-than-covid-19.html "Pandemic restrictions that hampered the circulation of viruses other than COVID-19") lockdowns.

SATISFYING INVESTORS

The first of the latest wave of cuts [appeared to have started even before Zuckerberg’s announcement](https://www.financedigest.com/kylie-jenner-appears-to-announce-birth-of-baby-boy.html "Kylie Jenner appears to announce birth of baby boy"). On Friday, Meta said it was exploring “strategic alternatives” for Kustomer, a customer [service company](https://www.financedigest.com/italys-eni-sets-up-sustainable-transport-services-company.html "Italy’s Eni sets up sustainable transport services company") it acquired last year.

It also disbanded its skunk [work](https://www.financedigest.com/the-psychology-of-long-term-remote-working-productivity-vs-inclusivity.html "The psychology of long-term remote working: Productivity vs. Inclusivity") s New Product Experimentation team and reassigned leader Ime Archibong to work on product for Messenger, according to an internal memo seen by Reuters. Both changes were initially reported by the [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") Journal.

Investors have grown wary of Zuckerberg’s prolific spending as revenue growth from [Meta’s main businesses petered out amid](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") high inflation and a digital ads pullback from the pandemic e-commerce boom.

The company also has struggled with Apple-led privacy changes and competition for young users from [short video app TikTok](https://www.financedigest.com/youtube-in-challenge-to-tiktok-to-give-shorts-creators-45-of-ad-sales.html "YouTube in challenge to TikTok to give Shorts creators 45% of ad sales").

At the same time, Meta has been pouring billions of dollars into its metaverse-oriented Reality Labs unit, which lost $13.7 billion in 2022, and investing in infrastructure to support its [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Types of artificial intelligence") usage.

[Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") has been rewarding Meta steadily since its November restructuring, after its share price fell more than 70% earlier in 2022. The stock received another boost in February when Zuckerberg dubbed 2023 the [“Year of Efficiency,” with new cost](https://www.financedigest.com/commonenergy-mistakes-costing-homeowners-hundreds-of-pounds-each-year.html "Commonenergy mistakes costing homeowners hundreds of pounds each year") controls and a $40-billion share buyback.

The latest downsizing indicates “how desperate the company is to get [costs under control](https://www.financedigest.com/dutch-telecom-kpn-locks-in-2023-targets-helped-by-cost-controls.html "Dutch telecom KPN locks in 2023 targets helped by cost controls") as its revenues have fallen amid declining marketing budgets,” said Hargreaves Lansdown analyst Susannah Streeter.

[“Virtual reality is an expensive business](https://www.financedigest.com/neoma-business-school-opens-the-first-virtual-campus-in-europe.html "NEOMA Business School opens the first virtual campus in Europe") to be in, so while (Meta) maps out a path through an uncertain landscape, it needs to find efficiencies elsewhere,” she added.

In his memo, Zuckerberg made scant mention of virtual reality and instead emphasized the company’s focus on AI, [saying Meta’s single largest](https://www.financedigest.com/russias-largest-lender-sberbank-on-track-to-profitability-says-ceo.html "Russia’s largest lender Sberbank on track to profitability, says CEO") investment was in “advancing AI and building it into every one of our products.

Meta has teased AI-powered “creative aids” that can generate images, videos and text but has yet to [offer any such products on its apps](https://www.financedigest.com/accountants-can-add-even-value-offering-clients-new-breakeven-cis-calculators-downloadable-app.html "Accountants Can Add Even More Value by Offering Clients New Breakeven and CIS Calculators from Their Own Downloadable App"), even as peers have launched dueling generative AI chatbots and productivity tools in recent months.

With the latest cuts, Meta [expects expenses in 2023 to come in between $86 billion](https://www.financedigest.com/factbox-big-banks-expected-to-rack-up-more-than-1-billion-in-fines-for-whatsapp-use.html "Factbox-Big banks expected to rack up more than  billion in fines for WhatsApp use") and $92 billion, lower than the $89 billion to $95 billion forecast previously.

(Reporting by Katie Paul in New York, and Nivedita Balu and Aditya Soni in Bengaluru; Editing by Anil D’Silva and Nick Zieminski)


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