In an endeavour to become a more competent organization, Meta Platforms Inc, is planning a fresh round of layoffs and will cut thousands of employees as soon as this week.
Facebook parent Meta Platform Inc is looking to lay off thousands of employees in an additional round of job cuts after it dismissed over 11000 employees in its first-ever major layoff last year in November.
The second round of cuts in four months is driven by an efficiency push as Meta is witnessing a slowdown in revenue due to more restrictions in the targeted ads category, which is impacting the advertising revenue of the company. The metaverse platform is also far from generating any revenue.
Meta CEO Mark Zuckerberg has titled 2023 as the ‘year of efficiency’ for the company. Meta has stated that it is working on compressing its organizational model and removing some layers of middle handling to make decisions faster. It is also deploying AI tools to help its engineers be more efficient and dynamic.
As per Bloomberg News, the second-round layoffs can be done to meet financial goals. The report states that Meta, used to make a lot of money from advertising, but now wants to focus on the “metaverse”. The company needs to save money, so they’re planning to cut jobs.
The people who know about this plan to cut jobs say that it’s being done to meet financial goals and that directors and vice presidents are being asked to make lists of people who can be let go. The company has also completed a recent performance review of the employees which could easily be a precursor to the second round of layoffs.
The Wall Street Journal reported that previously, managers at Meta gave around 10 per cent of employees a rating of “meets most”, which is the second-lowest rating at the company. The lowest rating, “meets some”, is not something that the company gives quite often.
The ratings have been given to galvanize high-quality work and long-term thinking. The senior officials at Meta expect that the low ratings will lead to more employees leaving the company in the coming weeks. If not, enough employees leave willingly, the company may consider another round of layoffs.