CEO Mark Zuckerberg to complete new lay-off process before going on parental leave to have his third child

Meta Platforms Inc., is reportedly planning to lay off thousands of employees in a new round of cuts aimed at making the world’s largest social networking company more efficient. Sources told Bloomberg that this will be happening this week.

Mark Zuckerberg, who tagged 2023 as the “Year of Efficiency” for his company, previously reduced its workforce by 13% in November, and this latest round of layoffs comes as part of a broader effort to streamline operations.

The company has also been flattening its organisation by offering buyout packages to managers and cutting entire teams deemed nonessential. Innovation Village reported in last month that this move is still being finalised and could impact thousands of employees.

Bloomberg explained as at today on the premarket trading in New York, Meta’s shares had increased by 1.7%. Yesterday, when when the market was closing, the stock went up by 54%. This is since the year begun.

The upcoming job cuts are motivated by financial objectives and are distinct from the “flattening” process, according to insiders who preferred to remain anonymous when discussing internal matters.

Due to a decrease in advertising revenue and a shift in focus towards a virtual-reality platform known as the metaverse, Meta has been urging its directors and vice presidents to identify employees who could be laid off, as per the insiders.

The news reporter tried to confirm what day this would happen this week. However said that the spokesperson declined to comment on Meta’s plans.

Instead, Bloomberg’s sources have revealed that this stage of layoffs may be finalised within the following week. The individuals working on the plan are hoping to complete it before the CEO goes on parental leave for his third child, which may be forthcoming.

While the November layoffs were unexpected, the Meta workforce has been anticipating another round of terminations. Zuckergerg had earlier communicated “year of efficiency” to employees during a performance review the company started last year and concluded last week.

Recent events have led to heightened anxiety and low morale among colleagues at the Menlo Park-based firm. Some workers are concerned about their ability to receive their bonuses, which are scheduled to be distributed this month, if they lose their jobs before then, as per insiders.

Meta announced in February the launch of a subscription service named Meta Verified, which offers exclusive benefits and features such as Facebook and Instagram account verification badges to subscribers who pay a monthly fee of $11.99. Users who purchase the subscription through the iOS app will have to pay $14.99 instead. This service is mainly designed for content creators.