More trouble ahead for Meta, in whose future there is a new wave of layoffs that should affect around a thousand employees. This is reported by Bloomberg News, with a new report stating that the new cuts should start as early as this week.
The layoffs will therefore increase the 13% of personnel cut in recent weeks, in the massive cost reduction operation announced last November. At the time the same Mark Zuckerberg he had declared that 2023 would be “the year of efficiency”. The first cuts of the new year began in February, with the closure of entire departments.
Meta: why so many layoffs?
At the basis of these drastic maneuvers there is obviously the disastrous financial report of 2022. Meta said its costs and expenses increased 22% year-over-year to hit $25.8 billion during the fourth quarter. Added to this was a 4% drop in revenue compared to the previous year.
Recall that the largest source of income for Meta is advertising from advertisers, a market that has not been favorable to the company at all. On the one hand digital advertising was held back by Apple’s 2021 iOS privacy update, on the other hand the market has been literally engulfed by TikTok.
Despite these difficulties, Meta continues to invest in the development of the metaverse, which represents the future of the company. The division Reality Labsin charge of creating the virtual world and related technologies to access it, made revenue for $727 million during the fourth quarter. However she has also registered one loss of $4.28 billion.
Zuckerberg said he will “take responsibility” for the company’s previously announced cost-cutting plans, saying he views the layoffs “as a last resort.”