Meta Layoff: Over 11,000 Workers Sacked, More to Follow.

Meta Layoff: Over 11,000 Workers Sacked, More to Follow

HIGHLIGHTS:

• Meta dealt a crushing blow to its workforce, letting go of approximately 11,000 employees, accounting for a staggering 13% of its global staff, all in November.
• Rumour has it that the company is strategizing a massive downsizing that could affect the livelihoods of thousands of its workforce.
• According to sources, the latest wave of Meta’s job cuts is expected to hit positions outside the engineering department majorly.

According to reports, Meta, the organization that owns Facebook, Instagram, and WhatsApp, will soon let go of thousands of workers. The report that the latest layoff wave at the company is set to have a more significant impact on positions outside of engineering, but fret not, as CEO Mark Zuckerberg is taking a hands-on approach by appointing human resources, lawyers, financial experts, and top executives to develop cutting-edge strategies that aim to flatten the company’s hierarchy.

In November 2022, Meta laid off almost 11,000 employees or 13% of their global workforce. The corporation then blamed the layoff on excessive hiring and unfavourable macroeconomic conditions.

The Reason for the Job Cuts

Meta has been undergoing significant changes in recent years. In 2020, the company rebranded from Facebook to Meta, signalling its intent to move beyond social media and into the virtual and augmented reality space. Since then, the company has been investing heavily in its Oculus virtual reality headset, which it sees as a key product for the future.

The latest round of job cuts comes as Meta restructures its business to focus more on its virtual and augmented reality products. The company plans to cut jobs across a number of its departments, including marketing, engineering, and product development. The goal is to streamline its operations and focus on products with the most growth potential.

Similar factors may have contributed to the most recent round of layoffs, and Meta is also managing expenditures in the face of declining income. The corporation said that its sales for the fourth quarter of 2022 were $32.17 billion, and for the entire year of 2022, $116.61 billion, down 4% and 1%, respectively, from the previous year.

According to the source, Meta is also thinking about making more conventional savings, such as eliminating some initiatives. While the alleged cuts at various departments within Meta may not happen in one fell swoop, rumours abound that the company may be gradually downsizing its workforce.

Interestingly, the latest buzz about possible layoffs surfaces just days after reports surfaced about the firm’s practice of assigning “below-average” ratings to thousands of its employees during performance reviews – a move that could very well foreshadow additional staff reductions shortly.

Amidst promises that the worst was behind them, Facebook CEO Mark Zuckerberg allegedly hinted at impending layoffs during his latest earnings call, according to The Washington Post, a surprising revelation following the massive 11,000 job cuts last November.

“With unwavering grit and determination, he revealed, “Amidst the tumultuous layoffs and the restructuring of our teams, we closed last year with an unwavering spirit. And as I stood amidst the chaos, I spoke with crystal clarity that this was just the start of our unrelenting pursuit of efficiency, not the culmination.”

In an effort to escalate its earnings, the company is stepping up their game with innovative tactics. One such move is Meta’s new subscription service, Meta Verified, which grants users exclusive features and a coveted blue badge on both Facebook and Instagram. The monthly fee for the membership is reasonable at $11.99 (about Rs 990) for the web and $14.99 (around Rs 1,240) for iPhones. The sole markets for the subscription are Australia and New Zealand (for now). Since several digital advertisers cut back on spending due to ongoing inflation, the subscription service was announced.

As we brace ourselves for uncertain economic times, it’s not just Meta but also other tech behemoths that might have to make the tough call of laying off employees in the near future. Amazon had initially intended to part ways with 10,000 of its employees, but the company had a change of heart and chose to bid adieu to over 8,000 of its workers in the earlier part of this year.

Twitter, under the visionary ownership of Elon Musk, is relentlessly pursuing cost-cutting measures. From shedding office space to auctioning off company supplies, the platform is leaving no stone unturned to shore up its finances.

Impact on the Company’s Future

The job cuts are part of a larger plan by Meta to pivot its business towards virtual and augmented reality. The company sees these technologies as the future of computing and believes that they will eventually replace traditional computing devices like smartphones and laptops.

The success of this pivot will depend mainly on the success of the Oculus virtual reality headset. Meta has been investing heavily in the development of this product, and it is betting that it will become a mainstream consumer device in the coming years.

If the Oculus is successful, it could be a game-changer for Meta. The company could become a leader in the virtual and augmented reality space and potentially even overtake companies like Apple and Google in terms of market share.

However, there are also risks involved. Virtual and augmented reality technologies are still relatively new, and whether they will ever become mainstream consumer products is still being determined. If Oculus fails to gain consumer traction, Meta’s pivot could be seen as a costly mistake.

Overall, the job cuts are a sign that Meta is serious about its pivot towards virtual and augmented reality. The company is making tough decisions to streamline its operations and focus on the products that it believes have the most potential for growth. Whether this pivot will be successful remains to be seen, but one thing is clear: Meta is betting big on the future of computing.

Reaction from Employees and Industry Experts

The news of the job cuts has not been well received by employees. Many are concerned about their job security and the direction of the company. However, others are optimistic about the future of virtual and augmented reality and believe that Meta’s pivot could pay off in the long run.

Industry experts are also divided on the issue. Some believe that Meta’s pivot is a smart move, given the potential of virtual and augmented reality technologies. Others are more sceptical, pointing out that these technologies are still in their infancy and that it is unclear whether they will ever become mainstream consumer products.

Regardless of the opinions of industry experts, it is clear that Meta is serious about its pivot towards virtual and augmented reality. The company is taking steps to streamline its operations and focus on the products that it believes have the most potential for growth.

Meta’s Future Outlook

Despite the challenges facing Meta, the company remains one of the most valuable and influential players in the tech industry. The social media giant has over 3 billion users across its various platforms, including Facebook, Instagram, and WhatsApp, making it a dominant force in the global digital landscape.

Furthermore, Meta’s trailblazing investments in cutting-edge technologies such as virtual and augmented reality are a testament to their commitment to diversifying their income streams and keeping one step ahead of their rivals. The company’s rebranding as Meta also reflects a broader shift towards a more futuristic and visionary approach to technology.

However, Meta’s latest job cuts highlight the challenges facing the company as it seeks to adapt to a rapidly changing industry. The social media giant will need to continue innovating and investing in new technologies to stay relevant while also addressing concerns over user privacy and data protection.

Edited by Prakriti Arora