Meta Announced Another 10,000 Layoffs And Emphasized Big Changes In The Market"Meta
Announced its plan of another 10,000 layoff and eliminate 5,000 jobs. the company's open letter, these initiatives are aimed at improving the company's efficiency and financial performance. Zuckerberg said that each division will announce restructuring plans in the coming months: the tech division will announce in late April and the business department will announce in late May.
According to Zuckerberg, the company will become flatter. Many middle-division managers will become independent contributors instead of leading people, which they will be assigned specific tasks.
Also, the number of projects will be reduced, because the indirect costs brought by unimportant projects are too high. Too many projects may put an engineer in a management position and distract his attention, and it will also force the team to be scattered in different places, making communication difficult, and may even result repetitive works between projects.
Zuckerberg emphasized that the company must optimize the proportion of engineers and at the same time increase the proportion of more face-to-face work. Data shows that working in person has better outcomes than working remotely.
Investors are happy to see such a change in Meta $Meta Platforms (META.US)$, especially the indirect cost has aroused my thinking. Investors could analyze a company’s efficiency from perspectives such as the revenue or profit of a unit employee. However, news from few days ago show that Meta is making a Twitter-kind of product, it is not clear whether if it would slow down the company’s efficiency. Beside layoffs, Zuckerberg had another few lines that caught my attention. In his outlook, Zuckerberg emphasized that the new economic status quo may last for several years; High interest rate will make the economy more compact; Geopolitical instability will bring more volatility and more regulation will make innovation more costly. These lines could hint at changes in the current environment of investment.
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