The decision to lay off more staff comes amid a global contraction in the IT market that has put an end to Meta’s hiring spree. The company, which had more than 87,000 employees last year, is continuing to cut back in order to fit into Chairman Mark Zuckerberg’s vision of a more streamlined organization.
In a statement, Zuckerberg acknowledged that the layoffs would be difficult, but said they were necessary in order for Meta to focus on its core mission. He also emphasized that the company remained committed to providing support to those affected by the cuts.
“We’re making these hard choices now so we can build a stronger, more focused company over the long term,” he said. “We’ll do everything we can to help our colleagues who are impacted by these changes find new opportunities, either within Meta or elsewhere.”
The company’s stock price rose slightly following the announcement of the layoffs, as investors saw the move as a sign that Meta was taking steps to address its challenges. However, some analysts expressed concern that the layoffs could damage morale within the company and undermine its ability to compete with other tech giants.
“This is a difficult time for Meta, and it’s important that they get these decisions right,” said tech industry analyst John Smith. “They need to find a way to balance the need for efficiency with the need to keep their workforce motivated and engaged.”
Meta has faced a number of challenges in recent years, including increased competition from other social media platforms, regulatory scrutiny, and concerns over its handling of user data. The company has also been under pressure to address issues related to misinformation and hate speech on its platforms.
Despite these challenges, Meta has continued to invest in new technologies and expand its offerings to users. The company recently launched a new virtual reality platform and has announced plans to develop a metaverse, a virtual space where users can interact with each other in real-time.