Meta Platforms CEO Mark Zuckerberg (pictured) revealed a plan to cut another 10,000 staff as part of ongoing efforts to improve financial performance in the face of a difficult economic environment, a move bringing the total laid off to 21,000.
In a statement, Zuckerberg cited rising interest rates, geopolitical instability and increased regulation as factors slowing Meta Platforms’ growth and increasing its costs.
“I think we should prepare ourselves for the possibility that this new economic reality will continue for many years”.
“Given this outlook, we’ll need to operate more efficiently than our previous headcount reduction to ensure success.”
Meta Platforms also dropped plans to fill 5,000 open roles.
Zuckerberg stated the company expects to detail cuts in its tech groups “in late April” with business groups to follow in May. He explained organisational leaders will unveil restructuring plans “focused on flattening our organisations, cancelling lower-priority projects and reducing our hiring rates”.
Meta Platforms will further reduce the size of its recruiting team.
In a US Securities and Exchange Commission filing, Meta Platforms predicted expenses of between $86 billion and $92 billion this year, compared with a previous forecast of $89 billion to $95 billion.
Meta Platforms stated it expected to incur restructuring costs in the range of $3 billion to $5 billion, covering severance and other personnel costs, along with fees related to consolidating its buildings and facilities.
Investors have expressed concern over Zuckerberg’s continued moves in the metaverse.
The company’s metaverse-focused Reality Labs division recorded a $13.7 billion operating loss in 2022 on revenue of $2.1 billion.
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