Meta plans more job cuts to ensure 2023 is its “Year of Efficiency”

Meta is planning for more job cuts, focusing on divisions across the company and its branches globally, to reorganize and scale down efforts that could affect thousands of workers, according to a report by the Washington Post.

Months ago, the Facebook parent company fired 13% of its workforce in its first major layoff. However, there are considerations by the company to carry out more cuts, including slashing some projects and jobs. The was reported by Post, citing an unnamed source familiar with the matter.

Mark Zuckerberg, the CEO, has also declared his intention to trim management and speed up the decision-making processes. According to The Post, the business plans to push some leaders into lower-level roles without direct reports, flattening the layers of management.

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The cause of Meta’s cost cut

The business need to cut costs is due to the reversal of fortune that it suffered over the last year. In 2021, the company was valued at $1 trillion, but multiple factors have heavily affected its value and stock price.

In addition, it lost billions of dollars in advertising income due to Apple’s privacy reforms to its mobile operating system and the migration of younger users to TikTok from Facebook and Instagram, which are its two biggest moneymakers.

When Meta let thousands of employees go in November, Mark Zuckerberg explained that it was part of the steps to become a leaner and more efficient company. He also stated that the company would cut discretionary spending and extend the hiring freeze.

2023; Meta’s year of efficiency

On Meta’s most recent earnings call earlier this month, Zuckerberg revealed the “Year of Efficiency” title in response to declining ad revenue, expensive bets on the metaverse, and heightened investor scrutiny.

As part of that strategy, it intends to “flatten” its organizational structure by eliminating intermediate managers and utilizing productivity-boosting techniques like artificial intelligence. The business recently said it was shutting down Instagram’s “Live Shopping” feature to minimize costs.

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