While Meta already shelved the integration of NFTs on Instagram this week, Mark Zuckerberg has informed that the company will be parting ways with 10,000 people. Last year, the group had already laid off 13% of its workforce.
Meta will lay off 10,000 employees
While Meta already had to part with 13% of its workforce last year, Mark Zuckerberg announces that his company has chosen to lay off 10,000 people within the next few months. The person concerned sent a long letter to his staff for this, in which he mentioned the need to say “goodbye to talented and passionate colleagues“.
Affected employees will be notified, and a hiring freeze and also to be planned. This restructuring will begin with the recruitment team, before extending to the technology division next month, then the sales staff by May.
One of the objectives of this decision is to “flatten” the hierarchical organization, so as to eliminate intermediaries in the decisions, with the aim to improve the functioning of the company :
“Of course, each layer of a hierarchy adds latency and risk aversion to information flow and decision making. Each manager usually reviews the work and tweaks some rough edges before sending it higher up the chain. During our “Year of Efficiency”, we will make our organization flatter by removing several levels of management. »
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Indeed, Mark Zuckerberg argues that the job cuts last year would have already showed a gain in efficiencyand that he had hitherto “underestimated the indirect costs of lower priority projects“.
While Meta sparked excitement around the metaverse in the fall of 2021, the struggles throughout the ensuing year have certainly leads the company to make these strategic choices to ensure its sustainability.
As for the group’s share, if it is still trading at almost 50% less than its all-time high (ATH), i.e. 194.02 dollars against 381.75, it still shows a clear progress since the beginning of the year with an increase of nearly 120%.
👉 Also in the news — Meta shuts down NFT plans on Instagram
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