Meta just released an update regarding its “Year of Efficiency” progress, Tuesday.
In a letter to employees, Meta CEO Mark Zuckerberg explained the company’s focus on flattening its orgs, canceling lower priority projects and reducing hiring rates in the next few months.
Due to this, Meta will be laying off an additional 10,000 employees starting April, with the recruiting team being one of the most affected sectors. The company will also be closing down 5,000 roles that it previously planned to hire.
“As I’ve talked about efficiency this year, I’ve said that part of our work will involve removing jobs — and that will be in service of both building a leaner, more technical company and improving our business performance to enable our long-term vision,” the CEO explained.
With all of Meta’s organizational changes, Zuckerberg also provided his employees with cultural principals to guide the company’s “efficiency work.”
By flattening the organization, removing layers of management hierarchy and limiting managers to no more than 10 direct reports, the CEO believes the company can deliver faster.
“We’ll also have individual contributors report into almost every level — not just the bottom — so information flow between people doing the work and management will be faster,” he added.
Zuckerberg also believes that turning Meta into a “leaner org” and canceling lower priority projects altogether will help the company execute higher priorities faster.
Last February, the CEO said in earnings call that 2023 would be Meta’s “Year of Efficiency.” Since then, the company has made several efforts to reduce costs, increase productivity, and find new ways to gain revenue.
Yesterday, the company’s commerce and fintech lead announced it is “winding down” on NFT support features for Instagram and Facebook. Last month, Meta also announced its testing of ‘Meta Verified’ – a paid subscription app feature that users can purchase to get a verified blue badge.