In a move aimed at improving organizational efficiency and financial performance, Meta, the parent company of Facebook, announced on Tuesday that it plans to cut around 10,000 jobs and close an additional 5,000 open roles that it has yet to hire.
In a memo to employees, Meta CEO Mark Zuckerberg outlined the company’s “Year of Efficiency” initiative, which aims to streamline operations and optimize its workforce for the future. The company plans to flatten its organizational structure, cancel lower-priority projects, and reduce hiring rates in the coming months.
The restructuring is expected to affect both the company’s tech and business groups, with layoffs set to be announced in late April and late May, respectively. Some changes may take until the end of the year to complete.
Zuckerberg acknowledged that the news would create uncertainty and stress for employees, but stressed that the changes were necessary for Meta to achieve its long-term goals.
“Our efficiency work has several parallel workstreams to improve organizational efficiency, dramatically increase developer productivity and tooling, optimize distributed work, garbage collect unnecessary processes, and more,” Zuckerberg wrote. “My hope is to make these org changes as soon as possible in the year so we can get past this period of uncertainty and focus on the critical work ahead.”
The company’s recruiting team will also be impacted, with fewer hiring plans forcing a reduction in the size of the team. Affected members will be notified on Tuesday.
It is unclear at this stage which departments and regions will be most affected by the restructuring. However, Meta’s international teams are expected to have different timelines, with local leaders following up with more details.
The news comes as Meta faces increased scrutiny from regulators and the public over its business practices, including its handling of user data and the impact of its platforms on mental health. The company has also faced criticism for its role in the spread of misinformation and hate speech.
Despite these challenges, Meta has continued to invest heavily in research and development, with a particular focus on virtual and augmented reality technologies. The company recently changed its name from Facebook to Meta, signaling a renewed commitment to building products that connect people in new and innovative ways.
As the company moves forward with its efficiency initiative, it remains to be seen how the changes will impact its long-term growth prospects and ability to innovate.