Facebook Chairman and CEO Mark Zuckerberg testifies before the House Financial Services Committee on the “Investigation of Facebook and its Impact on the Financial Services and Housing Sectors” at the Rayburn House office building in Washington, DC on October 23, 2019.
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Target will lay off another 10,000 workers and incur restructuring costs ranging from $3 billion to $5 billion, the company says he announced On Tuesday, CEO Mark Zuckerberg warned that economic instability could continue for “many years.”
Meta shares rose 5.5%.
“Here’s a timeline of what you should expect: Over the next several months, the organization’s leaders will announce restructuring plans aimed at flattening our organizations, eliminating lower-priority projects, and reducing our hiring rates,” Zuckerberg said in a message to employees, which was also posted on the Meta blog.
He added that the company plans to close another 5,000 open roles that it has yet to fill. In a nod to continued economic uncertainty, Zuckerberg noted that the company should prepare for “the possibility that this new economic reality will continue for many years.”
IN SEC filing in announcing the cuts, the company also said it expects total spending to fall between $86 billion and $92 billion in 2023.
The new round of layoffs follows a previous round of cuts, he announced in November, it affected more than 11,000 workers, which equated to roughly 13% of Meta’s total workforce.
Zuckerberg called 2023 the “year of efficiency” in which the company wants to become a “stronger and more nimble organization.”
“We’re a technology company, and our bottom line is what we create for people,” Zuckerberg said. As part of the restructuring, the company will also increase the number of direct reports for each manager.
Zuckerberg told analysts in February that Meta plans to “reduce projects that aren’t working or may no longer be core” while “removing layers of middle management to make decisions faster.”
“A leaner organization will deliver on its top priorities faster,” Zuckerberg’s message said.
However, the meta continues to spend billions of dollars developing the virtual reality and augmented reality technologies necessary to build the metaverse’s digital universe. The company’s Reality Labs division, which is tasked with creating the metaverse, lost about $13.7 billion in 2022 on revenue of $2.16 billion.
Amazon he announced a new round of layoffs in January that will affect 18,000 employees across various divisions.
Twilio, Dell, Enlargement and eBay also recently revealed significant cuts in their workforce. In January, Google revealed plans to lay off more than 12,000 workers, Microsoft announced plans to downsize 10,000 employees and Salesforce he said it was planned eliminate 7,000 jobs.
CNBC’s Ashley Capoot contributed to this report.
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