The news: Meta announced a second round of deep layoffs on Tuesday, with CEO Mark Zuckerberg admitting he made mistakes that led to this latest reversal.
Sound familiar? After increasing investments at the start of the pandemic, Zuckerberg announced November 2022 layoffs of 11,000 due to declining revenue projections, taking responsibility for the outcome and telling staff he had erred in expecting go-go growth.
The details: Cuts of an additional 10,000 jobs will begin in the coming weeks, starting with the recruiting team. The company is also scrapping around 5,000 unfilled job postings and conducting an analysis of its hybrid return-to-office model.
Projects killed: Meta is discontinuing support for nonfungible tokens (NFTs) on its platforms amid the crypto market downturn.
Not every investment is going away, of course: Zuckerberg’s note calls “advancing AI and building it into every one of our products” the company’s “single largest investment.” He also touted the company’s “leading work building the metaverse”—although in fairness, it’s easier to lead when few others want to.
Analyst insight: “It’s not surprising that Zuckerberg had additional revelations about places where he could make cuts once he and his teams started to peel back the layers,” said principal analyst Debra Aho Williamson. “Meta had become a very complex and manager-heavy organization. I’m sure he is aware of just how much these layoffs—not to mention the additional operating efficiencies he discussed—are going to test his credibility and vision as a leader."
A tough position: In his note about the latest layoffs, Zuckerberg acknowledged a “new economic reality” that could extend for years.