Quick take:
- Meta will start laying off up to 6,000 workers next week.
- This will be the third time the company has cut jobs in the last seven months.
- Meta laid off 11,000 workers last November and 4,000 last month.
Meta Platforms will start laying off more workers next week. This comes following co-founder and CEO Mark Zuckerberg’s previous comments that there will be another round of layoffs in May, without indicating the specific data and the number of workers and departments likely to be affected.
However, the social media conglomerate, turned metaverse dream-chaser revealed on Wednesday that the layoffs will affect Meta’s business departments with up to 6,000 jobs on the line.
This will be the third time in the last seven months that Meta has laid off workers following the 11,000 job cuts in November 2022 and another 4,000 in April.
According to a recording of a company-wide meeting obtained by Vox, Meta’s president of global affairs Nick Clegg told employees the third round of layoffs will begin next week.
“The third wave is going to happen next week. That affects everybody in the biz teams, including in my [team],” he said.
According to Clegg, Meta employees have demonstrated a great deal of resilience and professionalism throughout the entire process despite the anxiety and uncertainty surrounding the entire process.
“It’s just a time of great anxiety and uncertainty. … I wish I could have some easy way of providing solace or comfort. It is uncertain,” Clegg said, adding “and actually it’s really increased my admiration for the way that everyone — notwithstanding that uncertainty — you’re just displaying such resilience and professionalism.’
Although Clegg did not mention exactly how many people will lose their jobs during this round of layoffs, Zuckerberg had indicated in March that the company had planned to reduce its workforce by 10,000 in 2023.
The company is taking measures to improve its profit margins after a series of declining revenues. However, in its most recently reported quarterly results, the company top line increased by 3% from the first quarter in 2022 to $28.6 billion.
The company’s investment in the metaverse has played a crucial role in its diminishing profits with Reality Labs, the unit spearheading the conglomerate’s metaverse strategy reporting $4 billion in losses in the first quarter of 2023. This added to last year’s losses of $13.7 billion.
Although the company seems to have since cooled its metaverse campaign, Zuckerberg continues to insist that Meta remains committed to the course.
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