The economic condition of most countries is getting tough with every passing day and as a result, companies which had been known for their job security, are now taking measures to cut-off their operational costs. This cost cutting is coming in shape of huge layoffs. Meta is one of these companies and has decided to remove another 10000 employees from their workforce in an attempt to survive during the difficult times.
This announcement came as a shock since Meta has already laid off a big number of employees during round one of the layoffs and another huge chunk of layoffs was not expected in such a short span of time. The company announced a downsizing in its recruiting department which is likely to be followed by a downsizing in the tech and business departments in the coming months.
Meta has been working aggressively towards the restructuring of the company in order to survive during the deteriorating economic times. The company's focus is now on cutting costs majorly and very less focus is being put on expansion projects as of now. As a result, Meta will now be looking to carry forward projects that are of high value and can be seen as low hanging fruits in the market. Any project that does not fall under this criteria might be ignored until the financial situation has improved.
Mark Zuckerberg expressed his concern in an interview stating how difficult it was to take a decision that would impact lives of his loyal employees. A major reason behind this decision is the rise in interest rates that has contributed in higher costs of running businesses. Since most costs linked to a business are chained up to interest rates, companies are trying to cut costs that won't impact the sustainability of it.
This announcement came as a shock since Meta has already laid off a big number of employees during round one of the layoffs and another huge chunk of layoffs was not expected in such a short span of time. The company announced a downsizing in its recruiting department which is likely to be followed by a downsizing in the tech and business departments in the coming months.
Meta has been working aggressively towards the restructuring of the company in order to survive during the deteriorating economic times. The company's focus is now on cutting costs majorly and very less focus is being put on expansion projects as of now. As a result, Meta will now be looking to carry forward projects that are of high value and can be seen as low hanging fruits in the market. Any project that does not fall under this criteria might be ignored until the financial situation has improved.
This will be tough and there’s no way around that. It will mean saying goodbye to talented and passionate colleagues who have been part of our success.
With these complications in mind, most businesses are left with very few options such as cutting down fixed costs, laying off employees or moving to a hybrid model to reduce variable expenses.
While in some cases, companies can search for alternate ways to reduce their operational costs, in a scenario where financial survival is in question, companies do have to take harsh steps in order to survive. Mark Zuckerberg is motivated to make this year financially efficient and the forecasted savings through these layoffs are expected to be between 3-9 billion dollars for the year 2023.
Layoffs for Meta began in November 2022 when, the leading social media network across the globe, decided to layoff 11000 employees. This step (to layoff workers in a mass quantity) was taken by Meta for the first time in 2 decades of its existence. However, it is interesting to note that the tech giant has laid off a lot more than just 11000 workers since the beginning of 2022.
Is Meta taking the right decision or is it just another layoff season for the company? What is your take on this decision? Feel free to share your thoughts with us!