Meta announced on Tuesday that it would layoff another 10,000 employees as a part of the second round, becoming the first major tech corporation to do so as the sector prepared for a severe economic slump.
On hearing the news, Meta stock increased 6%. The much-anticipated job losses are part of a bigger reorganization that will also see the corporation abandon hiring plans for 5,000 vacancies, shelve less important initiatives, and compress middle management layers.
CEO Mark Zuckerberg wrote in a statement to employees, “I think we should brace ourselves for the prospect that this new economic reality will remain for many years.”
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In order to make the organization “flatter,” according to Zuckerberg, Meta will eliminate numerous layers of management, ask managers to become individual contributors and give them fewer than ten direct reports.
He said it makes more sense to utilize each manager’s capacity fully and defragment layers as much as possible, as he doesn’t anticipate headcount to increase rapidly.
The 11,000 job cuts made by Meta in November were the company’s first significant layoffs in its 18-year history. By the end of 2022, it had an increased headcount of 86,482 employees.