Recent reports suggest that Meta, the parent company of Facebook, Instagram, and WhatsApp, is preparing for another round of layoffs due to delays in finalizing budgets for its internal teams. The situation has caused disruptions in operations and critical projects, affecting employee morale. According to an internal source, managers of each division are finding it difficult to plan ahead, which has created delays in operational output, including areas such as advertising and the metaverse.
This new round of layoffs will not be Meta’s first, as the company previously executed a significant trim that affected 13% of its total headcount. The current round will reportedly target middle management employees, who may be asked to step down to non-management roles or leave the company altogether.
Despite these cost-cutting measures, Meta has stated that the metaverse remains a long-term focus for the company, and it will continue to invest in this area. During its Q4 2022 earnings call, Meta CFO Susan Li declared that they were still expecting losses in metaverse operations for 2023.
Year of Efficiency, what does it mean
“Year of efficiency” is a term used by Meta CEO Mark Zuckerberg to describe the company’s goals for 2023. The focus of this initiative is to streamline operations and cut costs in a bid to make the company more profitable. The current round of layoffs may be part of this broader initiative, as Meta seeks to optimize its business operations in the post-pandemic era. However, reports suggest that the execution of this initiative has been less than efficient, with employees criticizing the company for paying people to do nothing. Despite the challenges, Meta has declared that the metaverse remains a significant focus for the company, and it will continue to invest in this area in the long term.
It’s not just Meta that has announced layoffs. Other technology companies, including Microsoft, have also made similar announcements as part of their restructuring processes in response to the COVID-19 pandemic’s market situation.
While it’s unclear how many employees will be affected by Meta’s new round of layoffs, it’s safe to say that the uncertainty of these reports will impact employee morale and could have implications for the company’s future operations.