San Francisco: Mark Zuckerberg, the CEO, and founder of Meta, recently alerted middle managers at the company after having laid off 11,000 employees in November of last year.
During a recent all-hands meeting, Zuckerberg is said to have warned the managers, according to The Verge’s newsletter Command Line by Alex Heath.
The CEO reportedly stated, “A management structure with too many layers is not desirable, where managers are managing managers who are managing managers who are managing the workers.”
This statement may indicate that the company, which is set to release its quarterly results this week, maybe considering further job cuts.
Chris Cox, the Meta Chief Product Officer, has talked about the need to simplify the organizational structure.
In November, Zuckerberg carried out one of the largest lay-off events in the tech industry, dismissing over 11,000 employees, which is around 13% of the global workforce and has prolonged the hiring ban until Q1 2023.
As of September 2022, Facebook’s parent company, which also includes Instagram, had over 87,000 employees.
Zuckerberg stated that the company intends to become a more streamlined and efficient entity by reducing discretionary spending and extending its hiring freeze until Q1.
He attributed the decision to the macroeconomic downturn, intensified competition, and a decrease in ad signals, stating that it caused “revenue to be much lower than I’d expected.”
Zuckerberg commented that at the beginning of the pandemic, the world shifted online rapidly and the increase in e-commerce led to remarkable revenue growth.
He expected this trend to continue even after the pandemic ended, leading him to make the decision to increase investments significantly. Unfortunately, this did not pan out as he had hoped.