As uncertainty about the state of the world economy hits the technology sector particularly hard, Facebook parent firm Meta is cutting 10,000 jobs, about equal to the number of layoffs the social media company announced late last year in its first round.
In November, the corporation announced the elimination of 11,000 jobs or around 13% of its employees at the time. Meta announced Tuesday that it would not fill 5,000 unfilled posts in addition to the layoffs.
There is no getting around the difficulty of this, said CEO Mark Zuckerberg.
For at least two years, Meta and other IT businesses have been actively hiring, and in recent months, they have started to let some of those employees go. Although hiring remains strong in the US, some industries have been badly impacted by layoffs.
Early last month, Meta announced diminishing profitability and decreased revenue for the third straight quarter. The business said that it would repurchase up to $40 billion worth of its own stock on the same day.
The Menlo Park, California, corporation announced on Tuesday that it will scale back its hiring of staff, make additional cutbacks to its tech groups in late April, and then make changes to its business units in late May.
By renaming the firm Meta and pouring tens of billions of dollars into developing his virtual reality vision, the metaverse, Zuckerberg has signaled a shift in Facebook’s priorities.
As I’ve discussed efficiency this year, I’ve mentioned that some of our work would include eliminating jobs. This will be done in order to both construct a smaller, more technological firm and improve our business performance to support our long-term vision, according to Zuckerberg.
The largest tech firms in the US are also reducing expenses elsewhere.
Following the largest round of layoffs in the company’s history and changes to its plans for remote work, Amazon halted building on its second headquarters in Virginia this month.
The persistence of global inflation has made decisions for American individuals and businesses increasingly challenging.
Fast-growing businesses, many of which are in the technology sector, are bracing themselves for what may be a protracted period of unfavorable economic conditions.
In a statement to staff members, Zuckerberg added, “At this point, I think we should be ready for the potential that this new economic reality will remain for many years.
Tuesday saw about 7% growth in Meta stock.
