Sun. Jun 4th, 2023

    Mark Zuckerberg says some Meta employees will share desks as the company scrambles to reduce costs

    Mark Zuckerberg announced layoffs at Meta on Wednesday morning.

    Some Meta employees will share desks as the company cuts costs amid layoffs, Mark Zuckerberg said.
    Zuckerberg said he viewed layoffs as a last resort and tried to cut costs in other areas beforehand.
    Meta announced it was laying off more than 11,000 employees, around 13% of its headcount.

    Mark Zuckerberg on Wednesday said that some Meta employees will share desks as a cost-cutting measure while the company reduces its office space.

    The Meta CEO announced the plans in a memo sent to employees regarding layoffs across the company. Meta, formerly known as Facebook, plans to cut more than 11,000 employees — around 13% of its workforce.

    “I view layoffs as a last resort, so we decided to rein in other sources of cost before letting teammates go,” Zuckerberg wrote in the memo.

    He added that it would result in a “meaningful cultural shift” in how Meta operates.

    “For example, as we shrink our real estate footprint, we’re transitioning to desk sharing for people who already spend most of their time outside the office,” Zuckerberg said in the memo. “We’ll roll out more cost-cutting changes like this in the coming months.”

    The CEO said that although Meta had cut costs across the business by shrinking its office space, among other measures, it wasn’t enough to bring expenses in line with revenue growth. Therefore, the company decided to lay off employees.

    Extending the hiring freeze until early next year — with a few exceptions — is also set to help Meta reduce costs, Zuckerberg said.

    “Not only are we saying goodbye to people we’ve worked closely with, but many of you also feel uncertainty about the future,” Zuckerberg said. “I want you to know that we’re making these decisions to make sure our future is strong.”

    In October, Zuckerberg said during an earnings call for Meta’s third-quarter results that the company planned to condense its workplaces as more staff were working remotely.

    Meta expects the majority of its employees to spend at least half their time in the office. Senior executives, such as Zuckerberg and Instagram boss Adam Mosseri, have embraced working from abroad.

    Read the original article on Business Insider


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