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Warning that economic instability may continue for "many years," Meta CEO Mark Zuckerberg announced Tuesday the company would lay off 10,000 more workers and incur restructuring costs ranging from $3 billion to $5 billion.
In an email to staff, Zuckerberg said that Meta (NASDAQ:META) would conduct multiple rounds of job cuts in the coming months, as well as cancel some projects and reduce hiring on top of closing around 5,000 open roles that it still needed to fill.
As part of its "Year of efficiency" plan, Meta will invest in tools such as those in artificial intelligence to focus on a "more optimal ratio of engineers to other roles." Thus, company recruitment teams could expect the first cuts, with restructuring and layoffs in its technology groups planned for late April, Zuckerberg said.
The cuts come less than six months after the world's largest social-networking company already laid off 11,000 people, or 13% of its staff, in November.
So far, Meta Platforms' stock has advanced nearly 50% this year before Tuesday's 6% climb following the news. Meanwhile, the company also said it anticipated lowered total expenses in 2023, ranging between $86 to $92 billion.
During the Covid-19 pandemic, Meta's employee ranks rapidly expanded as the demand for the company's digital services increased and Zuckerberg leaned into the moment. In 2020, the social media giant, which also owns Instagram and Whatsapp, grew by 30%, then 23% in 2021, having had more than 87,000 employees by the time Meta started cutting jobs in November.
"For most of our history, we saw rapid revenue growth year after year and had the resources to invest in many new products," Zuckerberg said. "But last year was a humbling wake-up call. The world economy changed, competitive pressures grew, and our growth slowed considerably," he noted.
Meta's revenues in 2022 were down 1% to $116.6 billion, while profits shrank 38%, from $13.77 a share to $8.59.
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