Facebook's parent company Meta has reportedly delayed finalizing the team budgets at multiple levels as it reportedly sets the backdrop for yet another round of job cuts. A report in the Financial Times, citing two Meta employees, said that there has been a lack of clarity on crucial matters such as team budgets as well as "future headcounts" in recent weeks. People at Meta have complained that since their managers have been unable to plan their upcoming workloads, their work efficiency is being hampered up to the point of "zero work".
Meta executed the layoff of about 11,000 staffers, or close to 13 per cent of its total workforce, in November. The report added that Meta, which owns Facebook, Instagram and WhatsApp, is planning a fresh round of job cuts.
Zuckerberg's 'year of efficiency' call and layoffs
Earlier this month, Meta-owner Mark Zuckerberg announced that the social media company would continue to bring its costs under control, as 2023 should be "the year of efficiency" for the company. Meta had also announced that it expects its 2023 expenses at between $89 billion and $95 billion
Meta layoffs: Potential timeline for next round
The Financial Times report claimed that the further job cuts at Meta are expected around March, as the company is currently going through performance reviews of staff, the paper said while citing three current and former employees.
What is Meta exactly doing?
As it struggles with rising costs and plummeting ad revenues, Meta has adopted various cost-cutting strategies in addition to firing almost 11,000 employees. By extending its freeze on fresh recruitment until the first quarter, the firm intends to reduce discretionary spending. However, it hasn't mentioned the areas that would be affected by the transfers or the estimated cost cuts. Before the firings, Meta had been indirectly hinting at cost-cutting measures by reducing its real estate holdings and doing away with some of the benefits it provided to its employees, such as free laundry and dry cleaning services, dinners they were permitted to pack home to their families and avail free valet services.
The United States' economic slump made everything worse. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season.
What next for Meta?
An impending recession has Meta and its advertisers on high alert. The difficulty of using Apple's privacy settings, which make it harder for social media sites like Facebook, Instagram, and Snap to monitor users without their permission and target them with adverts, is another issue. As more young people choose TikTok over Instagram, which Meta also owns, competition from TikTok is becoming a greater concern.
“We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint,” Zuckerberg said. "We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go."
More cost cuts at Meta will be rolled out in coming months, Zuckerberg said. However, Zuckerberg has made it clear that his commitment to the metaverse is unwavering.
What happens to the Indians who got fired?
Many affected Indians have expressed their concern on social media platforms like Twitter and LinkedIn. These affected Indians are on H1B visas and must find jobs within 60 days of the termination date. Any H1B visa holder who is unable to obtain employment within 60 days will have to return to their country of origin. In this situation, Indians who are jobless after the grace period must go back. The original employer will need to bear the cost of their return ticket in accordance with H1B visa policy.
Unlike Musk, Zuckerberg said that he will assist migrant employees with their immigration.
“I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need. Outside the US, support will be similar, and we’ll follow up soon with separate processes that take into account local employment laws,” Zuckerberg said in a letter addressing the employees.cuts. A report in the Financial Times, citing two Meta employees, said that there has been a lack of clarity on crucial matters such as team budgets as well as "future headcounts" in recent weeks. People at Meta have complained that since their managers have been unable to plan their upcoming workloads, their work efficiency is being hampered up to the point of "zero work".
Meta executed the layoff of about 11,000 staffers, or close to 13 per cent of its total workforce, in November. The report added that Meta, which owns Facebook, Instagram and WhatsApp, is planning a fresh round of job cuts.
Zuckerberg's 'year of efficiency' call and layoffs
Earlier this month, Meta-owner Mark Zuckerberg announced that the social media company would continue to bring its costs under control, as 2023 should be "the year of efficiency" for the company. Meta had also announced that it expects its 2023 expenses at between $89 billion and $95 billion
Meta layoffs: Potential timeline for next round
The Financial Times report claimed that the further job cuts at Meta are expected around March, as the company is currently going through performance reviews of staff, the paper said while citing three current and former employees.
What is Meta exactly doing?
As it struggles with rising costs and plummeting ad revenues, Meta has adopted various cost-cutting strategies in addition to firing almost 11,000 employees. By extending its freeze on fresh recruitment until the first quarter, the firm intends to reduce discretionary spending. However, it hasn't mentioned the areas that would be affected by the transfers or the estimated cost cuts. Before the firings, Meta had been indirectly hinting at cost-cutting measures by reducing its real estate holdings and doing away with some of the benefits it provided to its employees, such as free laundry and dry cleaning services, dinners they were permitted to pack home to their families and avail free valet services.
The United States' economic slump made everything worse. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season.
What next for Meta?
An impending recession has Meta and its advertisers on high alert. The difficulty of using Apple's privacy settings, which make it harder for social media sites like Facebook, Instagram, and Snap to monitor users without their permission and target them with adverts, is another issue. As more young people choose TikTok over Instagram, which Meta also owns, competition from TikTok is becoming a greater concern.
“We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint,” Zuckerberg said. "We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go."
More cost cuts at Meta will be rolled out in coming months, Zuckerberg said. However, Zuckerberg has made it clear that his commitment to the metaverse is unwavering.
What happens to the Indians who got fired?
Many affected Indians have expressed their concern on social media platforms like Twitter and LinkedIn. These affected Indians are on H1B visas and must find jobs within 60 days of the termination date. Any H1B visa holder who is unable to obtain employment within 60 days will have to return to their country of origin. In this situation, Indians who are jobless after the grace period must go back. The original employer will need to bear the cost of their return ticket in accordance with H1B visa policy.
Unlike Musk, Zuckerberg said that he will assist migrant employees with their immigration.
“I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need. Outside the US, support will be similar, and we’ll follow up soon with separate processes that take into account local employment laws,” Zuckerberg said in a letter addressing the employees.
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