Meta Prepares First Mass Dismissal in Its History

Meta is preparing for its first-ever mass dismissal, with plans to lay off 10% of its workforce in the coming weeks (Reported by The Wall Street Journal (WSJ). This figure is significantly lower than Twitter’s recent 50% staff reduction. Mark Zuckerberg had indirectly hinted at the impending layoffs during a presentation of the company’s third-quarter financial results.

Meta mass dismissal

The Implications of Meta’s Workforce Reduction

During the financial results presentation, Zuckerberg stated that they will downsize some Meta teams, while others might experience growth. With over 87,000 employees worldwide, a 10% reduction would leave 8,700 individuals without jobs. In comparison, the total number of employees Meta plans to let go exceeds Twitter’s entire former mass dismissal (7,500) before layoffs.

Meta’s Compliance with Employment Laws

This mass dismissal marks a first in Meta’s 18-year history, previously known as Facebook. The company expected to notify its employees on Wednesday, adhering to California and US employment laws, which require 60 days’ notice for mass layoffs. Twitter failed to meet this requirement, resulting in a labor lawsuit.

Reflection on Big Tech’s Challenges | Mass Dismissal and Layoffs

Meta’s mass dismissal is noteworthy due to the sheer number of affected employees when big tech companies are struggling financially. While Twitter’s 50% staff reduction might be considered the “layoff of 2022,” the social media platform is expected to rehire some employees who were wrongfully dismissed or considered essential to the company’s plans.

The Anticipation and Suggestions Surrounding Meta Mass Dismissal

  1. Layoffs Rumors at Meta

    Rumors of significant layoffs at Meta first surfaced in June. Zuckerberg expressed that there were likely many people within the company who shouldn’t be there. As the pandemic prompted Meta to hire extensively, the time has come to reevaluate those decisions.

  2. Shareholder’s Open Letter

    Prior to Meta’s financial results announcement, an open letter from shareholder Brad Gerstner went viral. In the letter, Gerstner criticized Zuckerberg’s focus on the metaverse and proposed three steps for Meta to regain market confidence, including a 20% workforce reduction. Although Gerstner’s desired layoff percentage wasn’t achieved, Zuckerberg continues to concentrate on the metaverse, with potential plans to expand the division in the future.

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Despite the upcoming mass dismissal, Meta’s commitment to the metaverse and other innovative projects remains unwavering. As the company restructures and reallocates resources, the hope is that it will ultimately emerge as a more agile and focused organization, better equipped to tackle the challenges of an ever-evolving tech landscape.

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