Meta has recently initiated its third round of layoffs as part of a strategic plan aimed at reducing costs focusing on members of Meta's business groups
Meta, formerly known as Facebook, has recently initiated its third round of layoffs as part of a strategic plan aimed at reducing costs. The latest round of cuts focuses on members of Meta's business groups, following a previous round in April that impacted technical roles. These measures come in the wake of a challenging economy and a weakened digital advertising market.
Meta has made the decision to downsize its workforce further, leading to the announcement of a new round of layoffs. This round, targeting employees within the company's business groups, is expected to result in around 10,000 job losses. The announcement aligns with a report by Reuters, as affected employees took to LinkedIn to share their experiences. While Meta declined to comment, CEO Mark Zuckerberg previously acknowledged that cuts to the business groups would commence in late May.
The ongoing layoffs are part of Meta's comprehensive plan referred to as the "year of efficiency." CEO Mark Zuckerberg has emphasized the necessity of streamlining the company to enhance agility and adaptability. In a post made in March, he highlighted the need to build a leaner, more technical company while improving business performance to achieve their long-term vision. The layoffs represent a crucial step in achieving these goals.
Meta's decision to implement cost-cutting measures can be attributed to the current challenging economic climate and a weakened digital advertising market. By reducing costs, Meta aims to navigate these difficulties more effectively.
Despite the economic hurdles and market challenges, Meta reported a 3% increase in first-quarter revenue compared to the previous year, amounting to $27.91 billion. This growth followed three consecutive periods of decline, indicating a positive turnaround. Investors have taken note of Meta's efforts to cut costs, leading to a significant surge in the company's share prices. Since hitting a low of under $89 in November, Meta's shares have risen by an impressive 180%, reaching $246.74.
Despite the cost-cutting initiatives, Meta remains committed to investing heavily in the development of the metaverse. The company's Reality Labs unit, responsible for virtual reality and augmented reality technologies, reported a $3.99 billion operating loss during the first quarter. However, the unit also generated $339 million in sales, indicating a substantial focus on innovation and growth potential in this emerging field.
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