On March 14, Meta Platforms (META.O), the parent company of Facebook, declared they would lay off 10,000 employees in 2020, making them the foremost Big Tech firm to reveal a second stage of major firings as the sector anticipates a major economic shrinkage.
On hearing the news, Meta's stocks jumped 6%. This reshaping will involve dropping all plans to fill 5,000 positions, ceasing lower-priority tasks and "flatten" the number of middle management levels.
After doubling its employee count in 2020, the company experienced its first mass layoff in the fall, which saw more than 11,000 jobs cut, representing 13% of its total staff.
Concerns of a recession due to increasing rates of interest have caused a surge of layoffs across corporate America in the past few months. Tech businesses have been the most prominent, having eliminated more than 290,000 jobs since the beginning of 2022, as reported by Layoffs.fyi.
In addition to rising cost of living, the organization is confronting special challenges to its fundamental digital advertisements operation while committing large sums to CEO Mark Zuckerberg's desires to create a futuristic metaverse.
On Tuesday, Zuckerberg sent a communication to employees informing them that the majority of layoffs would be revealed over the next two months, though some may extend until the close of the year.
"For most of our history, we saw rapid revenue growth year after year and had the resources to invest in many new products. But last year was a humbling wake-up call," Zuckerberg wrote.
"I think we should prepare ourselves for the possibility that this new economic reality will continue for many years."
Zuckerberg declared his aim to downsize the recruitment squad further, which had already experienced significant cutbacks in the autumn terminations. Structural changes in the tech sector would be revealed at the end of April, and reductions to business entities would take place in May.
Meta plans to decrease managerial levels, convert many managers to individual contributors, get rid of non-engineering roles, automate a number of tasks, and partially backtrack on the "remote-first" promise that Zuckerberg made in the midst of COVID-19 pandemic restrictions.