Meta, the company that owns Facebook, Instagram and WhatsApp, has announced plans to lay off 10,000 workers. It will be the second wave of mass layoffs by the tech giant, which laid off 11,000 employees last November. Meta CEO Mark Zuckerberg said the cuts would be "serious."
Zuckerberg confirmed to employees that along with the 10,000 job cuts, 5,000 vacancies at the company will remain unfilled.
In the letter, he told employees he believed the company had experienced a "wake-up call" in 2022 when it experienced a dramatic slowdown in revenue, several news outlets reported.
Meta previously reported that in the three months to December 2022, earnings fell 4% year-over-year, although it still managed to post a profit of more than $23 billion over the last year. Zuckerberg cited higher interest rates in the US, global geopolitical instability and increased regulation as some of the factors influencing the company's slowdown.
Zuckerberg said that the most recent decision is part of the company’s plans do adapt and overcome the new economic reality that might be in place in the years to come. Although Zuckerberg didn’t directly say what he was thinking about, it’s getting more frequent seeing major companies laying off workers as a preparation for a possible recession that might be just around the corner, something that many financial experts have been warning about in past several months.
The latest job cuts come as companies including Google and Amazon grapple with how to balance cost-cutting measures with the need to remain competitive.
Amazon announced earlier this year that it planned to cut more than 18,000 jobs due to the "uncertain economy" and rapid hiring during the pandemic, while Google's parent company Alphabet cut 12,000 jobs.
According to layoffs.fyi, which tracks job losses in the tech sector, more than 128,000 jobs have been cut in the tech industry so far in 2023.