Tech

Layoff

After laying off 11,000 people, the giant announced that it would lay off another 10,000 people after 3 months! CEO: Surviving employees “will be more productive”!

On March 14 local time, Facebook’s parent company Meta said that due to the economic downturn, the company will continue to lay off 10,000 employees this year. Meta has therefore become the first large technology company to announce the second round of large-scale layoffs.
It is worth noting that in November last year, Meta carried out its first large-scale layoffs, with more than 11,000 layoffs, accounting for 13% of its total employees at that time. Meta has been on a hiring spree in 2020, and at its peak last year, Meta had more than 87,000 employees.
Meta announces another 10,000 job cuts
According to news from CCTV Finance on the evening of March 14 , Mark Zuckerberg, CEO of Facebook’s parent company Meta, said on Tuesday that the company plans to lay off 10,000 people. Meta lays off more than 11,000 employees in November 2022.

According to The Paper, technology media TechCrunch reported that the layoffs will be carried out in batches. The technology department will begin layoffs in April, and the layoffs in the business department may occur in May.
Meta CEO Mark Zuckerberg said in a statement that the company aims to flatten its organization by eliminating layers of management, “and over the next few months, Department leaders will announce a restructuring plan focused on flattening the organization, eliminating lower priority projects and reducing hiring rates.”

” (The layoffs) are tough , and it will mean saying goodbye to our talented, passionate colleagues who have contributed to the company… I am grateful for all their hard work.” Zuckerberg said in a message to employees wrote in the memo.
In fact, Meta’s layoffs have long been foreshadowed. In a conference call in February this year, Zuckerberg announced that the theme of 2023 is “Year of Efficiency” and revealed that the middle management will be eliminated, and underperforming or less important projects will be actively cut.
According to a company meeting transcript, Zuckerberg told remaining employees at the time that “massive layoffs will be minimized in the future.”
Workers complain that nothing can be done now because managers cannot plan their future workloads. “Projects and decisions that normally take days to sign off now take about a month,” said one employee. “It’s still a mess here, to be honest.”
Since September 2021, Meta stock price has been falling from its all-time high of $384.33. For the whole year of 2022, Meta’s stock price will drop by 64%, with the largest drop in the range close to 80%, the worst performance among large American technology companies. Zuckerberg himself has thus become the richest American who lost the most wealth in the past year.

According to Haiwai.com, Zuckerberg also announced that the company will cut 5,000 unfilled vacancies and lay off some employees of the recruitment team . He believes that the employees who survive the elimination will be more productive . The layoffs are Meta’s second round of layoffs in just four months.

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Announced layoffs of 11,000 in November last year
On the morning of November 9, 2022 local time, Meta CEO Zuckerberg confirmed the scale of the overall layoffs in an open letter . The number of layoffs is about 13% of the total number of employees, with a total of 11,000 people. The company will also extend the hiring freeze until the first quarter of 2023.

According to Meta’s September 2022 filing with the U.S. Securities and Exchange Commission, Meta employs more than 87,000 people. According to a number of foreign media, Meta’s layoffs are the largest layoffs in the company’s history.
Zuckerberg said that the revenue growth during the epidemic did not continue, advertising and e-commerce revenue fell, while the macroeconomic downturn, increased competition and advertising losses caused Meta’s revenue to fall far below his expectations.
“This is a sad time, and there is no way we can get around this (layoff). For those who are leaving, I want to thank you again for everything you have done for this place.” Zuckerberg expressed his concern for the layoffs in the letter of guilt.
Regarding the specific details of layoffs, Zuckerberg stated that employees will receive 16 weeks of basic salary severance pay, and on this basis, they will receive an additional 2 weeks of basic salary for each full year of work, with no upper limit; the company will Employees and their families will pay an additional six months of health care expenses, and paid holidays will be paid; restricted stock for laid-off employees will be paid on November 15, 2022; for non-US employees, the company will give notice periods and visa forgiveness Expect.
Behind Meta’s substantial layoffs is the continuous decline in the company’s performance.
According to the financial report for the fourth quarter and full year of 2022 released by Meta, the company’s revenue in the fourth quarter of 2022 will be US$32.165 billion, a decrease of 4% from the same period in 2021; the net profit will be US$4.652 billion, a decrease of 55% from the same period in 2021 . Diluted earnings per share were $1.76.
Facebook’s daily active users in the fourth quarter of 2022 will reach 2 billion, a year-on-year increase of 4%, and monthly active users will be 2.96 billion, a year-on-year increase of 2%. The daily active users of the entire social family app reached 2.96 billion, a year-on-year increase of 5%, and the monthly active users were 3.74 billion, a year-on-year increase of 4%.
The metaverse business that Meta is betting heavily on is still burning money. The financial report shows that in the fourth quarter of 2022, the revenue of Reality Labs, the Meta universe department, was US$727 million, a year-on-year decrease of 17.1%; the loss during the reporting period was US$4.279 billion. The sector will have a total loss of US$13.717 billion in 2022 , an increase of 34.57% from the loss in 2021.
From a full-year perspective, Meta’s total revenue in 2022 will be US$116.609 billion, a decrease of 1% from 2021. Net profit was US$23.2 billion, down 41% year-on-year .
Notably, Meta had nearly $41 billion in cash, cash equivalents, and marketable securities at the end of 2022. The company expects first-quarter 2023 revenue of between $26 billion and $28.5 billion, above market expectations. The company also expects total expenses in 2023 to be between $89 billion and $95 billion, which is lower than the company’s previous forecast of $94 billion to $100 billion, due to slower expected growth in salary expenses and cost of revenue. The company also announced a $40 billion share repurchase program.

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