The Second Round of Mass Layoffs Begins
In March, Meta became the first major tech company to announce a second round of mass layoffs. The company stated that these layoffs would occur in three main batches over several months, affecting 10,000 employees.
Employee Morale Suffers Due to Layoffs
The expected job cuts led to frustration among Meta employees. Questions about the layoffs dominated internal company forums ahead of an upcoming employee town hall. Employees questioned leadership's decision and the effects on morale.
Meta's Initial Layoff Round Affects Over 11,000 Employees
The first round of layoffs in the fall impacted over 11,000 employees or 13% of Meta's workforce. This preceded other tech companies laying off thousands of workers after a pandemic-driven surge in digital advertising and cloud computing.
Company Restructuring and Investor Reaction
Meta is discontinuing lower-priority projects and reducing middle management as part of the restructuring. Investors have responded positively, with Meta shares increasing about 80% this year, outperforming the tech-heavy Nasdaq Composite's 16% rise.
Upcoming First-Quarter Results and Market Expectations
Meta will announce its first-quarter results on April 26. The company is anticipated to benefit from a slight increase in the digital advertising market and regulatory pressure on its main competitor, TikTok.