Meta CEO Mark Zuckerberg
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Only 26% of Meta employees are confident in company leadership, The Washington Post reported.
The falling morale follows months of layoffs and spending cuts at the company.
Despite internal sentiment, Wall Street is hot on Meta: The stock is up 112% so far this year.
It’s another not-so-great day of news for Meta and Mark Zuckerberg.
Only 26% of Meta employees who responded to an internal survey were confident in their company’s leadership at the end of May, according to a report from The Washington Post, which cited a personal familiar with internal company matters. That marked a drop of five percentage points from October 2022, according to the Post.
Only 43% of employees who responded said they felt valued, the Post reported, down from 58% in October.
Low employee morale at the tech giant follows months of tumult, which included multiple rounds of layoffs, spending cuts, and strategy changes as part of Zuckerberg’s plans for a “year of efficiency.”
“They’re constantly wondering, ‘Is there another round coming? Am I next?'” Kerry Sulkowicz, a corporate advisor and managing principal of the Boswell Group, told Insider of Meta employees in April.
Layoffs were first announced last November, when Meta said it would slash 11,000 jobs, or about 13% of its workforce. A hiring freeze and spending cuts were also announced.
In March, a second round of layoffs hit the social media giant, this time affecting 10,000 staffers. The last of that round of cuts took place at the end of May, after the survey was conducted.
“You’ve shattered the morale and confidence in leadership of many high performers who work with intensity,” one employee posted in an internal forum following the second round of cuts. “Why should we stay at Meta?”
Remaining employees are now left to take on more responsibilities and get accustomed to new managers, the Post reported, citing four current and former employees.
The company has pulled back on its Metaverse ambitions while embracing AI. The U-turn on the Metaverse has left employees doubting Zuckerberg’s leadership abilities, The New York Times reported.
Wall Street disagrees. Meta stock is up 112% year-to-date. Some of the firm’s AI bets are beginning to pay off, with advertisers flocking to the platform for its AI marketing tools.
Meta did not immediately respond to Insider’s request for comment.