Meta is planning a fresh round of layoffs and will cut thousands of employees as soon as this week, in an attempt to restore profitability.
This comes only three months after a 13% reduction in November, and this time it intends to become a more efficient organization.
“Year of efficiency”
Founder and chief executive Mark Zuckerberg said that 2023 will be “the year of efficiency” in the face of a weaker advertising environment that has exposed how much technology companies over-hired during the pandemic.
The last time it had laid off 11,000 workers in November in what was its first-ever major layoff in a reorganisation and downsizing effort.
This was among the biggest last year and the first in the company’s history.
The latest round is being driven by financial targets and is separate from the “flattening,” said internal sources.
Looking to metaverse
Meta had been seeing a slowdown in advertising revenue and has pivoted to virtual-reality platform the metaverse.
It has asked directors and vice presidents to prepare lists of employees to staff who are surplus to requirements.
The new cuts would come at the end of the company’s annual bonus round, something that may make it easier for some employees to accept buyout packages.
Upcoming parental leave
This phase of layoffs could be finalized in the next week and may take place before Chief Executive Officer Mark Zuckerberg goes on parental leave for his third child, which could be anytime soon.
On the human side, workers have been understandably experiencing heightened anxiety and low morale as of late.
Some have expressed concerns over whether they’d receive their bonuses, which are set to be distributed this month or that they may lose their jobs beforehand
Post exit benefits
Zuckerberg issued clarity on what will happen to employees after their exit from the company and the benefits they were entitled to.
Meta will pay 16 weeks of base pay and two additional weeks for every year of service, with no cap.
Paid Time Off (PTO)
PTO is a human resource policy that provides employees with a pool of bankable hours that can be used for any purpose.
The company will pay for all remaining PTO time.
Restricted Stock Units (RSU) Vesting
An RSU is an award of stock shares, usually given as a form of employee compensation.
Those impacted will receive their November 15, 2022 vesting.
The company will cover the cost of healthcare for the employee and their families for six months.
The firm will also provide three months of career support with an external vendor, including early access to unpublished job leads.
“I know this is especially difficult if you’re here on a visa.
There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status.
We have dedicated immigration specialists to help guide you based on what you and your family need,” said Zuckerberg.
Meta stock has risen sharply since Zuckerberg shared the company’s goals towards profitability over growth at any cost at the end of last year.
It’s up 53% since January 1st, making it the best performer among ‘Big Tech’ names by a large margin.
However, it’s still down nearly 3% on a 12-month view, and is down by more than half from its 2021 peak.