Parent company Meta, owner of Facebook, WhatsApp and Instagram, is preparing a new restructuring after 11,000 layoffs last year
The 11,000 layoffs at the end of last year are not enough to balance the budgets of Meta, the multinational owner of Facebook, WhatsApp and Instagram. As reported by Financial Times, the company is preparing another corporate restructuring, cutting even more staff this year.
Specifically, the sources consulted by the British newspaper point to the month of March as the most likely date on which the new cuts will be announced following the layoff of 13% of the workforce, as it is urgent to review the budgets of several teams and is currently undergoing performance appraisals of personnel.
The company’s own CEO, Marck Zuckerberg, assured that the multinational would make great efforts to keep costs under control this year, aiming to achieve the “year of efficiency”. All after the company achieved a net profit of USD 23,200 million (21,725 million euros) in 2022, which is 40% less than the previous year and the first drop (-1%) in the company’s annual turnover since its foundation.
The wave of job losses affecting many technology multinationals is mainly due to the end of the pandemic. And it is that in 2020 and 2021, electronic commerce experienced a “boom” for which many en masse hired people who are now being adjusted. Zuckerberg made the “mistake” of taking the company’s growth for granted at the pace of the pandemic and significantly increased investment, but “it didn’t work out as expected.” “I was wrong and I take responsibility for it,” the CEO admitted announcing the previous round of layoffs.
The latest to announce layoffs was Dell, which last week decided to lay off more than 6,500 people. The year started very dark for the industry after this wave of layoffs began in 2022. A total of 75,900 layoffs were announced in January alone, according to specialist website Layoffs.fyi, which monitors cuts at tech companies each month. Among the most notorious in January, the adjustment of 18,000 people announced by Amazon, the 12,000 laid off by Google or the 10,000 by Microsoft stand out. In 2022 there were 160,000 departures at many of these companies.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
