The hour of the great departure. Mark Zuckerberg, the group’s CEO, announced on Tuesday, March 14, that Meta, the parent company of social networks Facebook and Instagram, will cut another 10,000 jobs, following the first wave of layoffs of 11,000 employees in early November. In addition, the Menlo Park (California) giant will remove from its organizational chart 5,000 current vacancies and there will be no hiring for them, the manager said in a press release.
The list of positions involved will be revealed at the end of April and the restructuring will take place by the end of the year. At the end of those two waves, Meta will have cut its workforce by 24%, which is a brutal change for a group that hasn’t launched a social plan at all in the nearly twenty years of its existence.
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For Mark Zuckerberg, the decision is justified by necessity To make Meta a better technology company. And “To improve our financial performance in a challenging environment, so that we can achieve our long-term vision”. The co-founder of Facebook, which alone embodies the social network, used the term used while presenting the annual results, at the beginning of February, which is that the year 2023 should be “year of efficiency” for meta.
In addition to job cuts, the company will slow down the pace of hiring, added Mark Zuckerberg, who is also planningCancellation of non-priority projects.. The group had already announced a hiring freeze until the end of March 2023. Having recorded insolent growth since its inception, Facebook, which became dead at the end of 2021, has suffered since last year from a slowdown in online advertising.
The move was highlighted by a tweak to the iPhone operating system (iOS), which no longer allows the platform to collect as much data about its users as it did before. In addition, Facebook and Instagram are subject to increasingly strong competition, particularly from the video platform TikTok, which is shrinking their market share.
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In addition, Meta, like the entire tech industry, suffers from rising interest rates, which penalizes a sector that is too cash-intensive to fund its development. In 2022, Meta’s revenue shrank by 1%, to $116.6 billion.