Meta Initiates Final Round of Layoffs, Eliminating 10,000 Roles

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Meta Platforms Inc, formerly known as Facebook, has commenced the last phase of a three-part round of layoffs, aiming to eliminate 10,000 roles. The plan, announced in March, is part of Meta’s efforts to restructure its workforce and optimize its operations.

In March, Meta became the first major technology company to announce a second round of mass layoffs, following the dismissal of over 11,000 employees in the previous fall. These recent cuts have reduced Meta’s headcount to a level similar to mid-2021, after the company experienced significant growth through extensive hiring since 2020.

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Reports suggest that the current round of layoffs is primarily affecting teams involved in ad sales, marketing, and partnerships. Several employees have taken to professional networking platforms like LinkedIn to share news of their layoffs.

Meta’s CEO, Mark Zuckerberg, had previously outlined that the majority of the second round of layoffs would occur in three phases over several months, with the process largely concluding in May. However, smaller rounds of layoffs may continue thereafter.

The cuts have predominantly impacted non-engineering roles, underscoring the importance of engineering positions within Meta. Zuckerberg stated in March that the company aimed to restructure its business teams and achieve a more balanced ratio of engineers to other roles.

Even within technology teams, non-engineering roles such as content design and user experience research have been heavily affected, as revealed by executives during a company town hall meeting.

During the town hall, Zuckerberg disclosed that around 4,000 employees were laid off in April, following a smaller reduction in recruiting teams in March.

Meta’s decision to implement these layoffs follows a period of declining revenue growth, driven by factors such as high inflation and a slowdown in digital ad spending after the e-commerce boom during the pandemic.

Additionally, Meta has been investing billions of dollars in its Reality Labs unit, focusing on the development of the metaverse, as well as enhancing its infrastructure to support artificial intelligence initiatives. These endeavors have resulted in significant losses, with the Reality Labs unit alone recording a loss of $13.7 billion in 2022.

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