Tech layoffs 2023: Facebook parent Meta could slay thousands of jobs next week

Meta, the parent company of Facebook, is set to make additional layoffs that will be conducted in several rounds over the upcoming months, according to a report by Bloomberg.

The number of layoffs is expected to be the same as the 13 percent reduction in workforce Meta saw last year.

Last year, the company cut roughly 11,000 jobs, or about 13 percent of its employees. 

The first round of the latest layoffs is expected to be revealed next week and is likely to hit non-engineering roles especially hard. In addition, some ongoing projects and teams are also expected to be closed. 

Highest leverage opportunities

“We’re continuing to look across the company, across both Family of Apps and Reality Labs, and really evaluate are we deploying our resources toward the highest leverage opportunities,” Meta Chief Financial Officer Susan Li said Thursday at the Morgan Stanley 2023 Technology, Media & Telecom Conference. 

“This is going to result in us making some tough decisions to wind down projects in some places, to shift resources away from some teams,” she added.

Among the projects that will be cut are some wearable devices that were in the works at Reality Labs, Meta’s hardware and metaverse division. This move suggests a near-term dismissal of ongoing efforts to popularize virtual and augmented reality products even as longer-term research efforts continue.

CEO of Meta Mark Zuckerberg has dubbed 2023 Meta’s “year of efficiency,” and has set ambitious plans to communicate that theme to employees during performance reviews.

This has reportedly resulted in heightened anxiety and low morale among workers at the Menlo Park, California-based company. Concerns have also risen over whether employees would receive their bonuses, which are set to be distributed this month, if they lose their jobs beforehand.

In its previous round of cuts, Meta got rid of 11,000 workers in what was its first-ever major layoff. The company also gave out buyout packages to managers and cut whole teams it deems nonessential.

The company is still moving forward with some projects such as its subscription service called Meta Verified that will include a handful of additional perks and features, including Facebook and Instagram account verification badges for those who pay. It will cost $11.99 per month, noted the Bloomberg report.