by Meta sign is seen at its headquarters in Menlo Park, California, United States on November 14, 2022. … (+)
Meta, the parent company of Facebook, WhatsApp and Instagram, laid off around 11,000 employees in November, around 13% of its staff and the biggest layoffs in the company’s history. But the pain isn’t gone, according to a new report from the financial times, because more job cuts are expected soon.
“Further cuts are expected around March as the company is currently undergoing staff performance reviews, three current and former employees said,” the paper said. Financial Times reported on Saturday.
Uncertainty over who might be getting the ax has led to low morale, according to the new report, and is starting to have an impact on operations. Annual budgets that would normally have been finalized by now are apparently still in limbo as managers are stuck waiting to see how big their teams are next month.
And although founder and CEO Mark Zuckerberg promised a “year of efficiency” on his last earnings call, the year has been anything but efficient, according to workers.
“The year of efficiency is starting with a lot of people being paid to do nothing,” said one worker to the Financial Times.
Meta’s deep job cuts were welcomed by Wall Street, with the company’s stock soaring immediately after the layoffs were announced. But there’s still uncertainty about what the future holds for the social media giant, as Zuckerberg struggles with his plans to introduce users to the Metaverse, an ill-defined online space that nobody really asked for. It’s hard to force users to use anything that isn’t fun, and the Metaverse honestly feels like a pretty dull place right now.
But Meta isn’t the only company making cuts right now, as the Federal Reserve continues to raise interest rates in a bid to fight inflation and get people out of work. Zappos, owned by Amazon, laid off about 300 people last month and Microsoft announced a new round of layoffs on Thursday, while several other companies in the technology sector cut staff.
And major upheavals can wreak havoc for the people who remain, many of whom live in limbo whenever there are rumors that a new round of layoffs is on the horizon.
“Two Meta officials familiar with the situation told the Financial Times that there has been a lack of clarity about budgets or future headcounts in recent weeks. As a result, staff complained that ‘zero work’ is being done as managers fail to plan their next workloads, employees said,” according to the new report.
