Meta is set to lay off 10,000 workers to cut costs, between $3 billion to $5 billion, as the company’s economic instability could possibly go on for longer, the company announced on Tuesday.
“Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” said Meta CEO, Mark Zuckerberg.
The social media platforms company is planning to close 5,000 open roles that have not been filled.
Meta expected lower expenses total in 2023, falling between $86 billion and $92 billion, as Zuckerberg pitched this year to be the company’s year of efficiency, as it aims to be a stronger organization.
Meta is set to cut projects that are not performing or may no longer be crucial, and remove layers of middle management to make decisions faster, announced Zuckerberg in February.
The planned layoffs are the company’s second round since November, which affected more than 11,000 employees or 13 percent of Meta’s overall staff.
Despite Meta’s austerity policy, the company keeps spending more money on developing its virtual reality projects, in order to build its own digital universe, the metaverse. Meta’s Reality Labs division, which is responsible for creating the metaverse, has lost $13.7 billion in 2022.
