Meta Platforms Inc. announced on March 14, 2023, plans to cut approximately 10,000 jobs, nearly 10% of its workforce, marking the second major round of layoffs within months as part of its “Year of Efficiency” initiative. CEO Mark Zuckerberg communicated to employees that the layoffs would begin with the recruiting organization, followed by technical teams and business groups in phased notifications over several months.
The cuts follow a prior reduction of 11,000 jobs in November 2022 and are accompanied by plans to cancel 5,000 open positions, aiming to streamline operations, reduce costs, and focus on core priorities such as artificial intelligence and the metaverse. Meta’s workforce peaked at over 87,000 in late 2022 amid heavy hiring during the pandemic-fueled tech boom but faced slowing digital ad revenues and macroeconomic uncertainties.
Zuckerberg emphasized the difficulty of the decision, calling it “tough” and essential to position Meta for long-term growth and innovation. The company plans to flatten its organizational structure, remove layers of management, and cancel lower-priority projects to improve productivity. Despite the layoffs, Meta plans to continue investing significantly in AI development, cloud infrastructure, and metaverse-related technologies.
Industry analysts warn that repeated layoffs might impact employee morale and innovation, but many agree that operational discipline is necessary as Meta navigates competitive and economic challenges. Meta has pledged severance and support packages for affected workers, including pay, benefits, and outplacement services.
This second wave of job cuts comes as part of a broader tech industry trend, with companies like Google and Microsoft also announcing significant layoffs in recent months. Meta’s ability to execute its AI and metaverse ambitions amid workforce reductions will be closely watched by investors, employees, and industry observers.
