- Kyle Chua
Meta Planning Another Round of Layoffs That Could Affect Thousands of Jobs
Meta is planning another round of layoffs after sacking over 11,000 workers in November last year.
According to Bloomberg, the Facebook parent company is opting for more job cuts as early as this week. The move is said to be motivated by hitting financial targets and is not part of the company's wider efforts to flatten its organisational structure.
While no figures were shared, the latest round of cuts could reportedly affect thousands of jobs, adding to the 13% of workers who were let go in the previous round.
Meta CEO Mark Zuckerberg previously said 2023 would be the "year of efficiency" for his company as he focuses on measures that would lower costs. He told analysts in February that he would be cutting projects he no longer saw as crucial and restructuring management in such a way that decisions could be made faster.
Meta didn't respond to a request for comment about the cuts.
The latest round of cuts comes after Meta posted a 22% year-over-year increase in cost and expenses at US$25.8 billion during the fourth quarter of last year, while overall sales declined by 4% to less than US$32 billion. The social networking giant blamed weak advertising demand and competition from rivals like TikTok for the relatively low fourth-quarter yield.
The news also comes just a week after Meta announced it would be investing heavily in artificial intelligence (AI) technologies at its Data and AI Performance Summit in Singapore, as Tech Wire Asia reports. Meta, during the event, said it would be providing businesses with new AI-powered tools and innovations to help personalise ads and drive success. Meta Advantage+, for example, leverages AI to streamline the process of delivering ads by handling creative elements and user targeting. Meta also announced new investments in Privacy-Enhancing Technologies (PETs) that look to help businesses boost ad performance without compromising the privacy of users.
These investments are likely a response to the shrinking digital ad market, Apple’s 2021 iOS privacy update and the stiffening competition in the social media space, all of which have hurt Meta's ad business over the last year or so.
Meta is opting for more job cuts as early as this week after sacking over 11,000 workers in November last year.
The move is said to be motivated by hitting financial targets and is not part of the company's wider efforts to flatten its organisational structure.
While no figures were shared, the latest round of cuts could reportedly affect thousands of jobs, adding to the 13% of workers who were let go in the previous round.