Facebook-parent Meta Platforms said on Tuesday it would cut 10,000 jobs, just four months after it let go 11,000 employees, the first Big Tech company to announce a second round of mass layoffs.
“We expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired,” Chief Executive Officer Mark Zuckerberg said in a message to staff.
Meta in February announced that it expects its 2023 expenses at between $89 billion and $95 billion, with Mr Zuckerberg calling the period a “Year of Efficiency.”
The WhatsApp owner had cut more than 11,000 jobs or 13 per cent of its workforce in November, following such tech companies as Amazon and Microsoft which had announced thousands of layoffs due to the economic downturn.
The pandemic boom that boosted tech companies and their valuations turned into a bust in 2022 in the face of decades-high inflation and rapidly rising interest rates.
In November, Mr Zuckerberg had stressed on the need to become more capital efficient and said the company would shift resources to “high priority growth areas” such as its AI discovery engine, ads and business platforms, as well as its metaverse project.
Last year’s layoffs were the first in Meta’s 18-year history.
Meta aggressively hired during the COVID-19 pandemic to meet a surge in social media usage by stuck-at-home consumers. But business suffered in 2022 as advertisers pulled the plug on spending in the face of rapidly rising interest rates.