According to a report by Bloomberg. Meta, the parent company of both Facebook and Instagram is set to undergo another round of planned layoffs this week which has caused employees to be in a funk and full of anxiety because of the uncertainty and lack of job security at the moment.
Late last year, the company laid off more than 11,000 employees across its Family of Apps and Reality Labs divisions which translates to about 13% of its entire workforce.
Mark Zuckerberg, the company’s CEO highlighted the move was prompted by the fact that the company was facing a different economic reality and that online commerce wasn’t performing as well as it was at the height of the pandemic.
What’s more, last month there were reports that Meta was planning to lay off more of its workforce. The company’s CEO had also highlighted that this would be a year of efficiency which would see the company’s workforce cut down significantly.
In turn, current executives would also transition to lower-level positions in an attempt to enhance communication between them and the company’s topmost executive, with the aim of hastening the decision-making process.
At the time, Zuckerberg also highlighted the company’s intent to cut down on funding projects that were redundant and didn’t add value. The new report indicates that the planned layoffs could take place as early as this week.
In this new round of layoffs, thousands of people will reportedly be affected. “The company has also been working to flatten its organization, giving buyout packages to managers and cutting whole teams it deems nonessential,” says Bloomberg.
Per Bloomberg’s report:
Shares of Meta gained 1.7% during premarket trading in New York on Tuesday. The stock has risen 54% since the start of the year as of Monday’s close.
Meta has declined to comment on the matter, though people familiar with the issue indicated that this round of job cuts will be more focused on the company hitting financial targets rather than flattening. Zuckerberg is set to go on parental leave for his third child soon, and the report detailing these planned layoffs could be ready by next week.
Sources familiar with the matter have also highlighted that Meta has been asking both directors and vice presidents to come up with lists citing employees that they deem redundant in specific projects and divisions.
In related news, Meta also launched a new subscription service, Meta Verified that features a verified blue badge alongside other nifty perks at $11.99/month on the web or $14.99/month on iOS and Android.
Meta isn’t in a unique position either, Twitter was hit by massive layoffs late last month which affected approximately 50 employees. Ex-employees believe this could be Elon Musk’s way of erecting a completely new regime to run the platform.