Meta’s expenses in 2023 are forecasted to attain US$89 to US$95 billion. Perceiving this prediction, the company will perform a second layoff round this March.
Heaptalk, Jakarta — Facebook’s parent company, Meta Platforms, Inc, reportedly to cut off its workforce in the coming weeks. The Financial Times reported that the company continues delaying the completion of Meta budgets and headcounts in several divisions, which also plan to cut off the workforce.
Meta’s layoff announcement comes from anonymous employee information who also experienced this matter as morale at the company was low and little work was completed in several teams as they awaited a slowly moving budget decision.
As it is known, this layoff plan is the second round, as the company performed the first mass layoff phase by slashing its employees to around 11,000 in November 2022, representing about 13% of the total.
Previously, in early February 2023, Meta disclosed its spending forecast, reaching US$89 to US$95 billion, or equal to Rp1.33 to Rp1.42 billion this year. For this reason, Meta’s Chief Executive Officer, Mark Zuckerberg, claimed 2023 is the year of the company’s efficiency.
Cited in Reuters, Zuckerberg affirmed to be more proactive about trimming the projects, one of which is metaverse. As it is known, the company’s metaverse division, Reality Labs, closed a loss of US$13.7 billion, or nearly Rp208.5 trillion, in 2022, compared to the former loss worth US$10.2 billion (Rp155.2 trillion) in 2021.
Nevertheless, the metaverse business slowdown and the three consecutive quarters of year-over-year revenue decline would not stop stock buybacks at Meta. As explained in the latest earnings report, this multinational technology company had uplifted the share repurchase authorization by US$40 billion (Rp608,8 trillion).
“We are putting on an effort to flatten our organization structure and remove multiple layers in the middle management to create resolution more quickly and operate Artificial Intelligence (AI) technology to bolster our technicians to be more productive,” CEO Zuckerberg said in his Facebook post.
For this reason, as a part of this intention, Zuckerberg emphasized being more proactive in ceasing the projects which are not performing well while focusing on flourishing the company’s efficiency technique in undertaking its primary priorities.
As additional information, Facebook currently has 2 billion daily active users. The report has marked that Facebook, for the first time, has improved by 16 million users in the fourth quarter of 2022, coming from advertisement as the significant revenue. Another Meta platform, Whatsapp, also gained more than 2 billion daily active users, exceeding the Facebook app completion.
