Meta Lays Off 10k Employees, Zuck Eyes New Strategy

On Tuesday, Meta made a somber announcement of a second wave of layoffs, marking another setback for the social media giant. The CEO, Mark Zuckerberg, took responsibility for the company’s errors that led to this decision. This is not the first time that Zuckerberg has shouldered the blame for layoffs, as he admitted his misjudgment at the start of the pandemic, which resulted in the November 2022 layoffs of 11,000 employees.

Not Again, Zuck!

Meta’s second wave of layoffs will affect an additional 10,000 jobs, starting with the recruitment team. The company will also discard around 5,000 unfilled job postings, and there will be an analysis of its hybrid return-to-office model. These cuts will significantly reduce expenses, with the company estimating a $3 billion reduction.

At the end of December 2022, Meta had a total of 86,482 employees, representing a 20.16% increase from the previous year’s 71,970. However, this year-end number included most of the employees affected by the first round of layoffs. After this latest round of layoffs, it is expected that Meta’s headcount will be around 68,232. This number is lower than the final tally of 2021, but it is still 16.4% higher than the end of 2020’s headcount of 58,604.

Show Me the Money

This news of Meta’s latest layoffs raises concerns about the company’s financial stability and future prospects. With declining revenue projections, the company’s decision to make such drastic cuts highlights the challenging times it is facing. It remains to be seen how Meta will recover from these setbacks and adapt to the changing dynamics of the social media industry.

Meta has decided to discontinue its support for nonfungible tokens (NFTs) on its platforms due to the recent decline in the cryptocurrency market. According to a tweet from Stephane Kasriel, the head of fintech, the company is now focusing on other ways to support creators, individuals, and businesses. Although the social media giant had introduced support for NFTs on Instagram and Facebook less than a year ago, the company has made the decision to shift its focus elsewhere.

During the peak of NFT popularity, which saw sales reach billions of dollars, Meta had introduced support for NFTs. However, with the current market downturn, the company has made the difficult decision to discontinue this service. While not all investments are being abandoned, Mark Zuckerberg’s note highlights the company’s “single largest investment” in advancing AI and incorporating it into all its products. Additionally, the company is leading the way in building the metaverse, although this is admittedly easier when few others are interested in doing so.

It’s the Economy, Stupid. 

In his note addressing the recent layoffs, Zuckerberg acknowledged the challenging economic climate, which he expects to continue for an extended period. The parent companies of Facebook and Instagram must now find ways to innovate, and they have pledged to invest in tools to increase efficiency. However, they are also making significant cutbacks in several areas.

Innovation in the absence of growth in people and budget is a difficult proposition. Zuckerberg has recognized this, and he has emphasized the importance of efficiency in the past. While Meta is making cutbacks, its competitors, such as Apple, Google, and Microsoft, are more diversified and may be better equipped to fund advertising innovation, which could pose challenges for the social media giant.

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