Last Update: April 20, 2023, 00:56 AM IST
Meta shares are up nearly 80% this year, more than erasing a 64% decline in 2022, and outperforming the tech-heavy Nasdaq Composite’s 16% gain over the period. (file photo)
Meta became the first big tech company to announce a second round of mass layoffs in March
Meta Platforms Inc made another round of job cuts on Wednesday, this time hitting engineers and adjacent technical teams as Chief Executive Officer Mark Zuckerberg seeks to streamline the business to make 2023 the “year of efficiency”.
In March Meta became the first big tech company to announce a second round of mass layoffs, which it said would happen in three main batches over several months and affect 10,000 employees.
Wednesday’s cut, though expected, prompted expressions of dismay from Meta employees. The layoffs were the subject of the most popular questions posted on an internal company forum on Wednesday ahead of an upcoming employee town hall.
“You have shattered morale and confidence in the leadership of many high performers who work intensely. Why should we be in Meta?” read a query seen by Reuters.
The question references comments Zuckerberg made last year urging employees to work with greater “intensity” to meet the business challenges facing the Facebook and Instagram parent company.
The company declined a Reuters request for comment.
Meta’s first round of layoffs in the fall affected more than 11,000 workers, or 13% of its workforce at the time, and other major tech companies shed thousands of workers after the pandemic-led boom in digital advertising and cloud computing .
Along with the restructuring, Meta is also shelving low-priority projects and “flattening” layers of middle management.
Investors have rewarded the company for downsizing.
Meta shares are up nearly 80% this year, more than erasing a 64% decline in 2022, and outperforming the tech-heavy Nasdaq Composite’s 16% gain over the period.
The company, which will announce its first quarter results on April 26, is expected to benefit from a modest uptick in the digital advertising market and regulatory pressure on main rival TikTok.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
