Thursday 22 September 2022 05:23 AM Meta aims to slash costs by at least 10% within MONTHS by nudging out staff trends now
Facebook's parent company Meta is aiming to cut expenses by 10% over the next few months by reducing staff and reorganizing departments, days after it was announced CEO Mark Zuckerberg has lost $71 billion dollars this year.
The California company has been able to push out a number of staffers by reshuffling its departments and giving employees who are affected a 30 day window to apply for other roles in the company.
The process allows the company to reduce the cost of employees while avoiding the issuance of pink slips as it weighs options going forward.
Meta executives recently discussed the need for 'ruthless prioritization' within the company and said hiring freezes are necessary, though at the time they avoided using the word 'layoffs.'
Mark Zuckerberg, 38, is seen on September 15 in Los Angeles after learning his wealth has dropped by $71 billion so far this year as his company aims to cut costs by at least 10%
In February, Meta revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price that has yet to recover
Zuckerberg, the New York-born billionaire, has seen his fortune steadily slip away since he launched Meta and the stock is down 58% YTD
Meta spokesman Tracy Clayton referred to Zuckerberg's statement in July that said the company would need to reallocate resources to confront stalling growth.
'We’ve been public about the need for our teams to shift to meet these challenges,' Clayton said.
Clayton refused to give a number on how many employees are affected by the reshuffling, but said the process allows the company to retain useful employees.
Meta reported having 83,553 employees at the end of the second quarter, up 32% from a year ago.
Zuckerberg, the New York-born billionaire, has seen his fortune steadily slip away since he launched Meta, Facebook's parent company, in October 2021.
Almost all of Zuckerberg's wealth is tied up in Meta stock, and he holds more than 350 million shares, according to the company's latest proxy statement.
In February, Meta revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price and slashing Zuckerberg's fortune by US$31 billion - among the biggest one-day declines in wealth ever.
Meta is performing worse than its peers, Bloomberg reported - down 57 percent this year, versus 14 percent for Apple, 26 percent for Amazon and 29 percent for Google's parent company Alphabet.
At least his brood is booming! Meta boss Mark Zuckerberg announces his wife Priscilla Chan is pregnant with their third child - a baby girl
Facebook founder Mark Zuckerberg has announced that he's expecting his third child.
The business mogul, 38, shared the exciting baby news via Instagram amid reports that he had lost billions of dollars after attempting to pivot into the metaverse.
Zuckerberg and his wife, Priscilla Chan, already share two children together, two daughters, named Maxima, six, born in December 2015, and August, five, born in August 2017.
'Lots of love. Happy to share that Max and August are getting a new baby sister next year,' he wrote on social media, alongside a snap that showed the billionaire alongside his wife, Chan, as he placed his hand on her stomach.
