Zuckerberg Announces Headcount Cuts At Meta, First Major Cut Since Its Founding In 2004
Zuckerberg said in a statement, ¡°I had hoped the economy would have more clearly stabilised by now. But from what we're seeing it doesn't yet seem like it has, so we want to plan somewhat conservatively.¡±
Meta Chief, Mark Zuckerberg has revealed its next course of action to reorganise teams and reduce headcount for the first time in the company¡¯s history, marking an end to an era of extensive growth at the social media company, as per a Bloomberg report.
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Bloomberg highlights that this could be the first major budget cut since the founding of Facebook in 2004. Zuckerberg revealed that the company plans on freezing hiring as well as restructuring some teams to trim expenses and ¡®realign priorities¡¯.
Zuckerberg revealed this during a weekly Q&A session with employees, according to an individual who was attending this. Zuckerberg highlighted that Meta in 2023 would be smaller compared to this year.
The company is to expect budget cuts for most teams, even those that are currently growing, and individual teams will deal with how they wish to execute the headcount changes. This could include not hiring new people after old ones depart, shuffling individuals in other teams or working to ¡®manage out people who aren¡¯t succeeding¡¯.
Zuckerberg said in a statement, ¡°I had hoped the economy would have more clearly stabilised by now. But from what we're seeing it doesn't yet seem like it has, so we want to plan somewhat conservatively.¡±
The cost cuts and hiring freeze only shed light on how Meta¡¯s advertising revenue growth has slowed down, thanks to rising competition, economic pressures as well as Apple¡¯s app-tracking safeguards working against Meta¡¯s targeted advertising efforts.
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On the other hand, TikTok is growing, attracting the young crowd, and Zuckerberg is investing a major chunk into the metaverse future, which he has said will lose money for many years before becoming profitable.
The reason the freeze was announced on Thursday, as per Zuckerberg, is that they didn't want to add people for roles that might not exist next year.
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