Meta will lay off another 10,000 employees, Mark Zuckerberg announced

The matrix of Facebook and Instagram, metaplatformsannounced this Tuesday that it will cut other 10,000 jobsin the midst of its owner’s struggle, mark zuckerberg, to achieve greater corporate efficiency in the face of falling revenues. The cuts are made less than six months later after the social media giant announced 11,000 dismissals in November, a measure that reduced the total number of employees by a 13%.

The company will incur construction costs that oscillate between US$3,000 and US$5,000 million, as announced on Tuesday by the company. In this sense, Zuckerberg warned that economic instability could last for “many years“.

Layoffs in technology: what are the side effects in Argentina?

“In the coming months, the leaders of the organizations will announce charter plans focused on downsize our organizations, cancel lower priority projects and reduce our hiring rates,” said the businessman in a message to employees, which was also published on the Meta blog. And he added that the firm plans to close other 5,000 vacancies which has not yet been covered.

In a presentation to Securities and Exchange Commissions (SEC) in announcing the layoffs, the company asserted that it expected a reduction in total expenses in 2023, that would oscillate between US$86,000 and US$92,000 million.

2023: the year of efficiency

Zuckerberg introduced 2023 as the “efficiency year“, in which the company intends to become “a stronger and more agile organizationl”. We are a technology company, and our bottom line is what we build for people,” said the CEO.

Despite the words of the CEO of Meta, the company continues to spend billions of dollars to develop the technologies to build their long-awaited metaverse. The company’s Reality Labs division, in charge of creating the digital universe, lost about $13.7 billion in 2022 with revenues of US$ 2,160 million, according to CNBC.

Other majors execute cuts in the technology sector

Although all the figures are approximate, the world’s technology companies are going through a pivotal moment. Something that has been aggravated due to rising interest rates that prevents access to financing.

Alphabet: 12,000 jobs cut: Google, owned by parent company Alphabet, said last Friday it will lay off that many people from its workforce.

sundar pichai, Google’s CEO, said in an email sent to the firm’s employees that the layoffs in the United States began immediately. In other countries, the process “will take longer due to local laws and practices“, said.

The bleeding of layoffs from big tech doesn’t seem to end

The CNBC Reported in November that Google employees had been fearing layoffs as their peers cut back and as employees saw changes to the company’s performance rating system.

For his part, Amazon also announced a new round of layoffs in January, following 18,000 employees in multiple divisions.

Twilio, Dell, Zoom and eBay they also recently announced significant payroll cuts. Microsoft aircraft announced to cut 10,000 employees and Salesforce said it planned to cut 7,000 positions of work.

The layoffs occur in a period of slowdown in economic growth, rising interest rates to combat inflation and growing fear of a possible recession in 2024. Thus, the technology sector and the companies that led the bull market during 10 years They adapt to a new reality.

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