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The latest round of cuts targets business groups

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Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, arrives at the federal court in San Jose, California, US, on Tuesday, December 20, 2022.

David Paul Morris | Bloomberg | Getty Images

Meta has begun its third round of layoffs as part of the company’s multi-billion cost-cutting plan.

The latest round of cuts targets members of Meta’s business groups and follows the previous round of dismissal in April affecting employees in technical roles. About 10,000 workers will lose their jobs between April and May in the cuts, after the company’s first ROUND in November affecting 11,000 employees.

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Meta employees with roles in user experience, marketing, recruiting and engineering took to LinkedIn to announce they were let go on Wednesday, backing up an earlier report by Reuters. Meta declined to comment but pointed CNBC to an earlier post by Zuckerberg that said cuts to the company’s business teams would begin in late May.

The cuts are part of the so-called “”year of excellence,” which CEO Mark Zuckerberg highlighted as necessary for the company to get smaller and more nimble amid a challenging economy and weak digital advertising market.

“While I was talking about efficiency this year, I said that part of our work will include eliminating jobs – and that will be used to serve both building a stronger, more technical company and improving of our business performance to enable our long-term. vision,” Zuckerberg said in March of a post. “I understand that this update may feel strange, so I wanted to put a broader context on our vision, our culture, and our operating philosophy.”

In April, Meta reported earnings in the first quarter up 3% from $27.91 billion last year, after three consecutive periods in which revenue declined.

Despite the cost cuts, Meta continues to invest heavily in the newborn metaverseand its Reality Labs unit that develops virtual reality and augmented reality technologies logged a $3.99 billion operating loss while generating $339 million in the first quarter.

Investors applauded Meta’s significant cost-cutting, which sent shares to the social networking giant. RISE 177% to $264.74 since a low of $89 in November.

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