After laying off more than 11,000 employees making nearly 13% of its workforce, Meta, the parent company of Facebook, plans to make additional cuts with another wave of layoffs. Thousands of workers may be impacted by the latest downsizing and reorganisation effort.
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Top executives, attorneys, financial experts, and human resources have been given the responsibility of creating plans to flatten the organisational structure of the company.
The company also plans to push certain executives to lower-level roles without direct reports. The managerial hierarchy between CEO Mark Zuckerberg and the company's interns will effectively be flattened as a result.
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Meta actively hired workers during the pandemic to accommodate a rise in social media usage from people who were stranded at home. However, the corporation’s revenues plummeted in 2022 as a result of a reduction in advertising revenues and consumers limiting their purchases because of surging prices and swiftly rising interest rates.
By reassigning some leaders to lower-level jobs without direct responsibility, Meta hopes to bridge the gap between top manager Mark Zuckerberg and the company's interns.
The company also disclosed last year that it will reduce office space, restrict discretionary expenditure, and extend a hiring freeze through 2023 in an effort to control costs.
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The long-term investment made by Meta to create the metaverse is continually losing money. The social media behemoth has stated that it anticipates Reality Labs, the internal division in charge of managing its virtual reality-capable products like its Quest headgear, to lose more money this year than it did last year.
