Meta Platforms is set to lay off 50 vice presidents as part of its ongoing efforts to streamline operations and reduce costs. This move is part of a larger strategy to create a leaner, more efficient organization. By Coingape Staff 17 hours ago Updated 16 hours ago
Highlights
- Meta Platforms is laying off 50 vice presidents to streamline operations and reduce costs.
- The layoffs are part of a broader effort that has seen thousands of job cuts in the past two years.
- Meta’s strategic principles include reducing management layers, investing in AI, and focusing on high-value projects.
Meta in recent reports are set to make key reductions by cutting down on the number of vice president positions. This latest wave of layoffs will see approximately 50 executives being let go as part of the company’s ongoing efforts to streamline operations and reduce costs amid a challenging economic environment.
The decision puts out Meta’s strategic shift towards a leaner organizational structure, prioritizing efficiency and agility in its pursuit of long-term growth and innovation. This move is part of a broader effort to adapt to market conditions and ensure the company’s sustainability and competitive edge in the technology sector.
Historical Context of Meta’s Layoffs
Meta has been implementing major cost-cutting measures over the past year. A recent report from June 12th states they aim to reduce vice president-level positions from around 300 to 250. This follows thousands of layoffs at the company, including 11,000 job cuts in November 2022 (13% of their workforce at the time) and another 10,000 layoffs announced in March 2023. They also froze hiring for 5,000 open roles.
CEO Mark Zuckerberg cited factors like the normalization of online activity after the pandemic boom, and a “year of efficiency” restructuring plan involving flattening the org structure, cutting lower priority projects, and downsizing recruiting teams. While streamlining operations, Meta continues navigating the post-pandemic economic landscape through major workforce and organizational changes.
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Strategic Principles and Future Investments
Mark Zuckerberg announced Meta is restructuring to become a leaner, stronger tech company focused on AI and the metaverse. Key principles include flattening management, cutting duplicative projects, optimizing engineering ratios, and investing heavily in new AI tools and technologies.
Meta plans to spend $35-40 billion by 2024 on AI and their Reality Labs metaverse division – $5 billion more than initially forecast. This massive financial commitment shows Meta’s strategic pivot, as they double down on building cutting-edge AI products and capabilities to drive future growth.
Zuckerberg even formed a new advisory council to guide Meta’s AI and technological vision going forward. It’s a major transformation aimed at positioning the company as an AI innovation leader.
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