Meta Postpones Finalizing Team Budgets As It Is Likely To Axe More Jobs

A report by the Financial Times claimed that Facebook owner Meta has not assigned teams at the company their annual budgets yet as the company expects to lay off more of its staff in a short time.

This fuelled further speculations of further layoffs at the social media company which were ignited a couple of days back when reports about the company contemplating more job cuts had emerged as the CEO Mark Zuckerberg announced 2023 as ‘the year of efficiency’ for the company.

Zuckerberg was also looking forward to increasing the speed of the decision-making process in the company by the removal of some of the ‘layers of middle management’, the CEO had also said.

According to a Reuters’ report that was originally credited to the Financial Times, Meta has postponed the finalization of budgets for a number of its teams due to the fact that the company expects to layoff more of its staff. 

Reports quoting information from Meta employees familiar with the matter claimed that there has been a dearth of openness about the budgets as well as the future head count for the last few weeks.

There were no comments from Meta on the issue in the report.

According to The Verge, Meta CEO Mark Zuckerberg confirmed the impending layoffs during the company’s fourth-quarter earnings call with investors. “I just think we’ve entered somewhat of a phase change for the company,” he said, according to the report. The CEO went on to say that the company’s employee base has been steadily growing for nearly two decades, making it “very difficult to really crank on efficiency while you’re growing that quickly.” He then stated that he is focused on improving decision-making efficiency by “flattening the organizational structure and removing some layers of middle management to make decisions faster.”

According to the report, Mark Zuckerberg stated that no one wants a management structure that has more managers than employees. “I don’t think you want a management structure that’s just managers managing managers, managing managers, managing managers, managing managers, managing the people doing the work,” he said.

Meanwhile, the Meta CEO stated in a press release that he is pleased that the company’s community is growing. “Our community continues to grow, and I’m pleased with the high engagement across our apps,” he said. Facebook recently passed the 2 billion daily active user mark.”

“The progress we’re making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization,” he added.

Meta announced in November 2022 that it would lay off 11,000 employees, representing approximately 13% of its workforce. Mark Zuckerberg announced the news in an official blog post. “I decided to significantly increase our investments. “Unfortunately, this did not go as planned,” he had written at the time.

(Adapted from WionNews.com)

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