Meta Platforms plans more layoffs next week

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Meta Platforms plans more layoffs next week

More job cuts are planned over the next few months, according to Meta Platforms Inc.

The first round of layoffs is expected to be announced next week, and it would hit the non-engineering roles, people familiar with the matter told The Wall Street Journal.

The final count of the cumulative cuts scheduled for the second quarter isn't yet clear, but the sources said the reductions this year are expected to reach the same proportion of those who remain.

Some wearable devices are being cut at Reality Labs, Meta's hardware and metaverse division, suggesting a near-term retreat from efforts to popularize virtual and augmented reality products even as longer-term research efforts continue, according to the people.

The report said that the additional cuts would be roughly the same as last year's 11,000 or 13 percent workforce layoffs.

Meta Chief Financial Officer Susan Li said at the Morgan Stanley 2023 Technology, Media Telecom Conference that we are continuing to look at the company, across both Family of Apps and Reality Labs, and really evaluate are we deploying our resources toward the highest leverage opportunities.

The company shutting its New Product Experimentation group last week, hinting at a possible cut in the headcounts.

In the earnings release, Mark Zuckerberg said that 2023 would be the year of efficiency for Meta Platforms.

Zuckerberg said he's not in favor of having layers of management in the company, indicating that he may be considering a reduction in middle managers.

In the company's performance reviews, thousands of employees have been criticized for their poor ratings.

The leadership team at Meta expects to lead more employees to leave in the coming weeks and it would consider another round of layoffs if not enough depart. A year ago, Meta announced the layoffs due to disappointing earnings, soaring costs, and a weak advertising market.

After his layoffs, Zuckerberg said he was accountable for Meta's missteps and that his over-optimism surrounding growth led to overstaffing. He acknowledged that I got this wrong and I take responsibility for that.

Zuckerberg said that the company expects to end 2023 as the same size or even a slightly smaller organization than we are today.