Meta, the parent company of Facebook, has announced that it will lay off an additional 10,000 workers in a bid to reduce costs and restructure the company. The decision comes after a previous round of cuts in November, which saw over 11,000 workers laid off. The latest layoffs are expected to incur restructuring costs of between $3 billion and $5 billion.
CEO Mark Zuckerberg has warned that the economic instability caused by the COVID-19 pandemic could continue for many years. He has outlined a timeline for restructuring plans, which will include cancelling lower-priority projects and reducing hiring rates. The company also plans to close 5,000 open roles that have not yet been filled.
Despite the announcement, Meta shares closed up 7% on Tuesday, indicating a positive response from investors. The company has also indicated that it expects to lower total expenses in 2023, with estimates ranging from $86 billion to $92 billion.
Zuckerberg has described 2023 as the “year of efficiency” for the company, with a focus on becoming “a stronger and more nimble organization.” As part of the restructuring, the company plans to increase the number of direct reports each manager has.
The decision to lay off more workers highlights the challenges that many companies are facing in the wake of the pandemic. Economic uncertainty has forced many businesses to reduce costs and rethink their operations. While some companies have seen a boost in demand due to changes in consumer behavior, others have struggled to adapt to the new economic reality.
Meta’s decision to cut jobs is a reminder that even large, established companies are not immune to economic disruption. As the pandemic continues to impact global markets, businesses will need to remain agile and adapt to the changing landscape to survive.