Zuckerberg Announces Bad News

The billionaire's social media company, Meta Platforms, will slash thousands more positions. Mark Zuckerberg declared 2023 Meta Platforms' efficiency year.

He suggested extreme austerity that may be tightened at any moment. Cutting enormous numbers of people and discarding irrelevant initiatives were crucial to Facebook's parent.

I've stated eliminating roles this year to create a smaller, more technical corporation and enhance our business performance to match our long-term aim.

After "rapid revenue growth year after year," the "world economy changed, competitive pressures grew, and our growth slowed considerably," Zuckerberg remarked.

"We should prepare ourselves for the possibility that this new economic reality will continue for many years," he said.

From November to mid-March, the social media giant eliminated 21,000 workers. On Nov. 9, 11,000 cutbacks followed by 10,000 in mid-March.

Meta will cut thousands more employees. Bloomberg News said that managers received an internal document urging them to prepare for difficult statements. 

Facebook, WhatsApp, and Instagram may be affected by 4,000 job layoffs. Reality Labs, which develops Quest virtual-reality headsets, would also be affected. 

Reality Labs, the company's future, lost approximately $24 billion in 2021 and 2022, including $13.7 billion last year.

Meta will announce first-quarter numbers on April 26, when Zuckerberg will likely discuss his "Year of Efficiency." 

Investors want to see whether these substantial cost reductions are paying off as the business, like other tech companies, enters the artificial-intelligence arms race.

Meta's fourth-quarter 2022 sales declined 4% to $32.1 billion and net income plummeted 55% to $4.65 billion. At Dec. 31, Facebook had 2.96 billion monthly active users, up 2%.

"After restructuring, we plan to lift hiring and transfer freezes in each group," Zuckerberg stated in March's blog post. 

Other efficiency timelines include completing our hybrid work year of learning analysis this summer to optimize our dispersed work model. 

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