Meta is reportedly planning more layoffs as part of its strategy to reduce operating costs. According to a Financial Times report, the company has delayed finalising budgets for several internal divisions. Including the one working in the metaverse. Some employees said there is no clarity on what will be done this year and said there will be further layoffs in March.
According to sources, there is discomfort among Meta staff. In the absence of a defined budget, managers are not planning properly and some employees are not working. People who confided the information on condition of anonymity also said that decisions take up to a month to be approved. Neither the metaverse nor advertising are spared, despite being two of the company’s priority areas.
Meta plans a new wave of layoffs in its “year of efficiency”.
The year of efficiency has not started well for Mark Zuckerberg, considering that Meta is paying several employees for doing nothing. Budgets, which are normally defined at the end of the previous year, remain a question mark for managers and other staff. This lack of clarity would run counter to statements by Zucks, who confirmed at the end of 2022 that Meta would become a leaner and more efficient company after laying off 11,000 employees and reducing its workforce by 13%.
A few months ago, during a call with investors to present the financial results for the third quarter of 2022, Mark Zuckerberg stated that they will continue to reduce expenses. Meta’s CEO said they will eliminate some layers of middle management to streamline decision-making. There was also talk of implementing tools to improve the productivity of its workers.
Meta’s “year of efficiency” will bring more layoffs
Although the company reported a drop in revenues in its latest financial results report, the shares soared by as much as 25%. Meta beat analysts’ predictions by a slight margin in key areas, such as advertising revenue and the number of daily active users. Zuckerberg has managed to calm investors with a plan that includes project closures and layoffs.
According to Zuckerberg, Meta will continue to work on methods to meet its roadmaps, although he is not afraid to cancel projects or close areas. “We’re going to be more proactive about cutting projects that are not performing or are no longer as crucial,” said the co-founder. The most recent victims of the restructuring are the Portal smart displays and the Meta Watch, the Android-powered smartwatch that was planned to debut this year.