Another Zucker punch: Meta plans fresh layoffs that will put THOUSANDS of staff out of a job before CEO Mark Zuckerberg goes on paternity leave – on top of 11,000 fired in November as part of tech giant’s ‘year of efficiency’
- Meta, the owner of Facebook and Instagram, to unleash new cuts after owner Mark Zuckerberg’s pledge 2023 will be ‘year of efficiency’
- The news comes after 11,000 jobs, 13 percent of the workforce, were slashed in November
- Morale among staff has plunged amid the layoffs – but Meta’s stock has surged
Meta is planning to slash thousands more jobs within days as billionaire owner Mark Zuckerberg keeps his promise to make 2023 a ‘year of efficiency’ for the firm.
The parent company of Facebook and Instagram is plotting a fresh round of layoffs after 11,000 jobs were axed in November.
Morale among some staff is rock bottom and many are worried they won’t receive their bonuses if they lose their jobs.
But Meta’s stock price has surged about 54 percent since the start of the year as investors welcome the cull. The rise follows a dismal 2022 throughout which the value of the company, which also owns WhatsApp, plunged by around two thirds.
Insiders told Bloomberg that executives working on the latest round of job losses want the plan ready before Zuckerberg takes parental leave for his third child, which is due imminently.
Meta executives want the job cuts plan ready before owner Mark Zuckerberg takes parental leave. Zuckerberg is pictured with his wife, Priscilla, in January. The baby is due imminently
Meta’s stock price has surged since the beginning of 2023 as investors welcomed the cost-cutting moves
The cuts in November were the first ever major layoffs at Meta and marked an 11 percent reduction in the workforce. Zuckerberg had previously warned staff that 2023 will be a ‘year of efficiency’ and this ethos has been drilled into them at team meetings and in performance reviews.
Roles vulnerable to the fresh job losses include HR, lawyers and financial experts. A restructure could also take place at the executive level.
Some staff will be offered payoffs and others who are essentially demoted through the restructuring process could quit altogether.
Meta’s stock price increased around 1.6 percent in pre-market trading on Tuesday and was valued at $184.90 per share, compared with $124.74 at the beginning of 2023.
Amid the sweeping cuts, one part of the business has enjoyed an increased to its budgets – Zuckerberg’s heft private security bill.
The 38-year-old, whose net worth is estimated to be $68.4 billion, received a 40 percent rise in his pre-tax security allowance from $10 million to $14 million. The hike was signed off by Meta’s board of directors.
That will cover just under half of his roughly $25 million annual security bill, according to reports.
Meta has yet to comment on reports about the latest round of cuts, which come at a volatile time for the world’s largest tech companies.
The loss of 11,000 staff in November were the first ever major layoffs at Meta and marked an 11 percent reduction in the workforce. Zuckerberg has warned 2023 will be a ‘year of efficiency’
A report published in January found the firms carried out an unprecedented number of job cuts in 2022.
Amazon, Twitter and Uber also shed thousands of jobs.
Tech job cuts – including mass layoffs at Meta and Twitter
A slew of tech companies have announced cost-cutting measures in 2022, with Amazon, Apple and Google-parent Alphabet all announcing hiring slowdowns or freezes.
For the tech sector, the pandemic boom turned to a post-pandemic bust, as rising interest rates batter share prices and inflation cuts into profits.
The sector shed 9,587 jobs in October, the highest monthly total since November 2020, according to data from consulting firm Challenger, Gray & Christmas cited by Bloomberg.
Total job cuts announced by US-based employers jumped 13 percent to 33,843 in October, the highest since February 2021, a report said.
The Facebook-parent said in November it would cut 13 percent of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as it grapples with a weak advertising market and mounting costs.
Meta cut 13 percent of its workforce, or more than 11,000 employees, in November 2022
Like its peers, Meta aggressively hired during the pandemic to meet a surge in social media usage by stuck-at-home consumers.
But but the pandemic boom-times petered out as advertisers and consumers pull the plug on spending in the face of soaring costs and rapidly rising interest rates.
After plunging billions into CEO Mark Zuckerberg’s Metaverse vision with little to show for it, Meta has been faced with rising costs and shrinking profits.
Meta, once worth more than $1 trillion, lost around 70 percent of its value last year alone. Stocks have bounced back in 2023 but remained below their peak at the beginning on March.
‘Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected,’ Zuckerberg said in a message to employees.
‘I got this wrong, and I take responsibility for that.’
Zuckerberg delivered the grim news about job cuts on a call with hundreds of Meta executives
On a short call, a red-eyed Zuckerberg addressed employees but took no questions.
He stuck to a script that closely followed the wording in the morning’s blogpost and called the increased investments in e-commerce a ‘big mistake in planning.’
Twitter laid off half its workforce across teams ranging from communications and content curation to product and engineering following Elon Musk’s $44 billion takeover.
The cutbacks affected roughly 3,700 employees, who learned their fate by email last week.
Twitter laid off half its workforce across teams ranging from communications and content curation to product and engineering
Musk previously said there was no other choice but to impose mass layoffs as the company loses hundreds of millions of dollars every year and needs a financial overhaul
In January, cloud-based software company Salesforce announced it will layoff 10 percent of its employees or about 8,000 workers.
CEO Marc Benioff cited a rough period for the tech sector as well as over-hiring during COVID-19 leading to the decision.
‘Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,’ a Salesforce spokesperson said.
Salesforce had 73,541 employees at the beginning of last year – it is the largest employer in the San Francisco area.
The company said in an August filing that headcount rose 36 percent in the past year ‘to meet the higher demand for services from our customers.’
Amazon said it would layoff 18,000 corporate and technology jobs what will be the largest job cuts in the company’s history.
The move comes as the company reportedly lost $1trillion over the year after its stock plummeted from a high during the pandemic.
If the company goes through with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon’s corporate employees
The move comes after the company put a hiring freeze in place, affecting major teams including Prime Video, Alexa and Amazon Fresh.
‘We’re facing an unusual macroeconomic environment, and want to balance our hiring and investments with being thoughtful about this economy,’ Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a memo.
Intel Corp’s CEO Pat Gelsinger told Reuters ‘people actions’ would be part of a cost-reduction plan.
The chipmaker said recently it would reduce costs by $3 billion in 2023, then ramping that up to $10 billion by 2025.
The adjustments would start in the fourth quarter, Gelsinger said, but did not specify how many employees would be affected.
Some Intel divisions, including the sales and marketing group, could be cut by up to 20 percent, Bloomberg News reported last month, citing people with knowledge of the situation.
Chipmaker Intel is reportedly planning major layoffs, likely numbering in the thousands, in the face of a slowdown in the personal computer market
The company had 113,700 employees as of July, when it slashed its annual sales forecast by $11 billion after missing estimates for second-quarter results.
Intel, based in Santa Clara, California declined to comment on the job cuts when reached by DailyMail.com in October.
Intel has been battered by shifting market trends, including the decline of traditional personal computers as smartphones and tablets rise in popularity.
Last quarter, global PC shipments, including desktops and laptops, declined another 15 percent from a year ago, according to IDC.
Microsoft in January initiated layoffs of 10,000 employees, citing slowing customer demand and a negative economic environment.
‘We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,’ CEO Satya Nadella said in a company memo.
The layoffs affected nearly 5 percent of Microsoft’s global workforce.
Microsoft previously laid off under 1,000 employees across several divisions last year, according to Axios.
In a statement, Microsoft executives said: ‘Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly.
Microsoft laid off under 1,000 employees across several divisions last month, according to Axios
‘We will continue to invest in our business and hire in key growth areas in the year ahead.’
Microsoft executives previously announced in July that it was laying off less than 1 percent of its workforce and significantly slow hiring, as its revenue fell short of investor expectations.
The company recorded only $51.9 billion in revenue during the second quarter of the year, but was expected to rake in $52.4 billion.
It had previously recorded blockbuster growth during the COVID pandemic, when consumers and businesses turned to its products as they shifted to a work-from-home model.
Ride-hailing firm Lyft said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs and froze hiring in September.
Lyft said in a regulatory filing it would likely incur $27 million to $32 million in restructuring charges related to the layoffs.
‘We are not immune to the realities of inflation and a slowing economy,’ Lyft’s founders wrote in the memo to staffers.
Ride-hailing firm Lyft said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year
The company’s share price has fallen 76 percent since the beginning of the year and was $9.75 on March 6, compared to nearly $45 in January 2022.
Lyft has about 4,000 employees, not including its drivers.
The music streaming service said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees from its 9,800 full time staff.
Spotify said it will incur about $38million in severance-related charges.
The company, whose CEO is Daniel Ek, said its chief content and advertising business officer Dawn Ostroff will also depart.
Spotify said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees
Though Apple has not yet announced any major layoffs, CEO Tim Cook told CBS Mornings that it is slowing some hiring as well.
‘What we’re doing as a consequence of being in this period, is we’re being very deliberate in our hiring,’ he said. ‘That means we’re continuing to hire, but not everywhere in the company are we hiring.’
At the same time, though, Cook said ‘we don’t believe you can save your way to prosperity.”
‘We think you invest your way to it,’ he said.
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