Facebook-parent Meta Platforms began the process of laying off more workers Wednesday, as the company moves forward with what Chief Executive Mark Zuckerberg has called a "year of efficiency." META stock fell on the news.
As part of its latest round of job cuts announced in March, Meta started laying off employees in technical roles, CNBC reported. The report said those restructurings and layoffs will continue into May. With less hiring overall, Zuckerberg said he's also reducing the size of the recruiting team, according to a report by Vox.
The layoffs are part of a widespread cost-cutting effort that will eventually eliminate more than 21,000 positions, as previously announced in November and March.
META stock fell 1% to close at 215.70 on the stock market today.
Zuckerberg said Meta is flattening the organization, canceling lower priority projects and slowing hiring. The job cutbacks includes those working on Facebook, Instagram, Reality Labs, and WhatsApp.
META Stock: A Sharp Pullback In Advertising
Tech firms have announced tens of thousands of technology job cuts this year. Further, reasons include concerns over economic weakness, recession worries and high interest, among others.
Facebook and other social media companies have also been hit hard due to a sharp pullback in digital advertising. This is happening as Facebook is spending billions on its risky "metaverse" bet. The metaverse is a virtual reality world that has yet to take hold.
In November, Meta cut 11,000 employees, or 13% of its workforce, and another 10,000 in March. Meta stock has soared 136% since November when the company announced its first round of layoffs. At the time, Zuckerberg vowed to make 2023 a "year of efficiency" for the beleaguered social media giant.
Meta, like all social media companies, is struggling due to a sharp reduction in advertising as companies squirm over macroeconomic concerns.
The tech industry layoffs are a result of over-hiring that started in mid-2020. It was a time when tech businesses were expecting consumers to go on a spending spree after the Covid-19 pandemic threats lifted, but it failed to materialize.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
