Meta, the parent company of Facebook, Instagram, and WhatsApp, announced on April 19 that it would be laying off 3,200 employees. The layoffs affected employees across all levels and functions but were mostly concentrated in technical roles.
LinkedIn posts from former Meta employees reveal gameplay programmers and engineers were most recently impacted this week, according to CNBC.
Upcoming planned cuts in May will reportedly affect business components of Meta, such as finance and HR, in line with a previous corporate statement. Teams such as wearable devices that were in the works at Reality Labs and the metaverse division are also expected to be affected, according to the Wall Street Journal.
The layoffs come as Meta faces a number of challenges. The company is facing increasing competition from TikTok, and its advertising business is under pressure from Apple’s privacy changes. Meta is also investing heavily in the metaverse, which is a risky bet that could take years to pay off.
And so far, the Metaverse is looking pretty bleak.
In a statement, Meta CEO Mark Zuckerberg said that the layoffs were necessary to “ensure that we are best positioned for long-term growth and success.” He added that the company would be “focusing on our highest priorities” and “making sure that we are operating efficiently.”
The layoffs are a sign of the challenges that Meta is facing. The company is no longer the unstoppable force that it once was, and it is having to make some tough decisions in order to remain competitive as a Silicon Valley titan.
Meta’s stock has responded well to the employee cuts, up 70% year to date from an abysmal $88.91 in November 2022.
What does this mean for the tech industry?
The layoffs at Meta are a sign of the broader challenges that the tech industry is facing in the current economic conditions. The industry is facing increased competition—especially as artificial intelligence has dominated headlines for months and is perceived as the most influential moment in modern technology.
Continuous regulatory scrutiny and rising costs impact growth and innovation at tech companies such as Meta. Many companies are having to make tough decisions—others would say corrective economic actions—such as laying off employees, changing plans for offices, and reducing amenities.
It is possible that the latest layoffs at Meta could lead to another wave of layoffs across the tech industry. However, it is also possible that the industry will be able to adapt to the challenges and continue to grow after many have already performed an initial round of extensive employee reductions. Only time will tell.
