Meta Announces Layoffs of 10,000 Workers Following NFT Plan Cancellation

The COVID-19 pandemic has impacted many global economies, and Meta (formerly known as Facebook) is no exception. The company has faced challenges adapting to the changing business landscape, much like many other businesses worldwide.

For example, the United States has seen a decline in GDP of 8.9% and a surge in imports that have surpassed exports due to increased demand from consumers and firms. The country is currently struggling with inflation and a sluggish economy, adding to the challenges businesses like Meta face.

As per a report from the Organization for Economic Cooperation and Development (OECD), the global economy witnessed a decline of approximately 1.5% in 2022, followed by another drop of about 0.5% in 2023. Although this decrease might appear minor, the ongoing economic crisis has significantly impacted the operations of certain businesses, including Meta, a well-known social media company.

Meta To Conduct Massive Layoff

Due to the ongoing crisis in the United States economy, Meta has decided to cut down its staff capacity. According to the firm’s announcement on March 14, it plans to lay off 10,000 employees in 2023 to stay afloat in the rising competition. The company also noted this move would enable it to invest in the metaverse to sustain optimum operation in the face of economic challenges.

The CEO of Meta, Mark Zuckerberg, emphasized the company’s critical role in the U.S. economy. He stated that the company is committed to enhancing its technological capabilities and financial performance amidst the economic crisis.

To accomplish this objective, Zuckerberg mentioned that the company intends to bolster its vital developer tools and productivity. Furthermore, the company plans to simplify its operations by eliminating redundant processes and positions to understand better what is necessary.

In another statement by the CEO, it was announced that laying off 10,000 employees from the company will begin on March 15 and will be carried out over the next three months. On March 15, employees affected by the layoff will receive a notice of termination. Some layoffs will occur in late April, including restructuring within the technology department.

In May, the final round of layoffs will occur, impacting team members in the business department. However, in addition to reducing staff capacity, Zuckerberg also mentioned that he plans to eliminate 5,000 vacant positions in the company during the same period.

Despite the initial plan for the layoffs to occur over three months, the CEO stated that the process might extend beyond that and could continue for the remainder of the year.

Previous Layoff in Tech and Crypto Sector

This is not the first instance of Meta carrying out layoffs. In November 2022, the company announced its largest layoff to date. According to a report by Bloomberg, Zuckerberg revealed that he would reduce staff capacity in the second week of that month.

The company had planned to lay off over 87,000 employees, which resulted in the suspension of new hires. The staff were also instructed to cancel all nonessential travel during the week of the announcement. The reason for the layoffs was due to the slow growth of the company and other tech giants during that period.

In addition to Meta, several other companies have reduced their staff capacity to withstand the challenging economic climate. Some examples include OpenSea, Coinbase, and Twitter.