The decision follows a first round of major cuts in November 2022 which saw a 13% headcount reduction at Meta, which owns social media platforms, Facebook, Instagram, and WhatsApp.
Thousands of workers across multiple divisions are to be affected: this week's cuts will affect recruiting staff, cuts in April are set to affect technical workers, while non-technical workers will face layoffs in May.
Announcing the cuts, Meta CEO Mark Zuckerberg declared 2023 was a year of efficiency. Job cuts and a reduction in middle management are part of the company's efforts to flatten its organization, he said.
“Over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” Zuckerberg wrote in a message posted to Meta’s blog.
Meta has found itself in a recent financial slump amid a struggling economy and an increase in competition from other growing social media platforms including TikTok. The big tech firm lost almost two-thirds of its value in 2022.
During this time, Meta posted a $13.7 billion loss due to investments made into Zuckerberg’s latest digital platform, Metaverse.
Meta's competitors have had similar struggles: tech companies across the world are have laid off a record number of workers this year. Global tech layoffs have more than tripled since mid-January, with 332 tech companies laying off almost 200,000 employees since the start of the year.
Google, Amazon, and Microsoft are just a few other companies who have cut staff within the technology sector in the past year.
The difficult economic conditions have impacted other sectors, with financial companies including the likes of Goldman Sachs and BlackRock laying off thousands of workers and Big Three consulting firm McKinsey laying off staff.
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