- CEO Mark Zuckerberg said Meta's "new economic reality" could last "many years" amid more layoffs.
- Higher interest rates, geopolitical instability, and regulation are to blame for the cuts, he said.
Meta CEO Mark Zuckerberg warned employees this week that his company's cost-cutting efforts will continue for years after he announced plans to lay off another 10,000 workers.
"At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years," Zuckerberg wrote in a Facebook post on Tuesday regarding the latest layoffs.
Zuckerberg said that tough economic conditions are to blame.
"Higher interest rates lead to the economy running leaner, more geopolitical instability leads to more volatility, and increased regulation leads to slower growth and increased costs of innovation," he wrote.
"Given this outlook, we'll need to operate more efficiently than our previous headcount reduction to ensure success," he said.
This week's cuts marks Meta's second round of layoffs in just four months. In November, Meta laid off 11,000 employees in an effort to reduce spending amid a market downturn. Four months later, Meta is now issuing more cuts as part of its "year of efficiency."
As part of Meta's plans to "become a leaner and more efficient company," Zuckerberg said that the company will cut 5,000 open job positions that haven't been filled and let go of some employees on its recruitment team. Meta also doubled down on its plans to "remove multiple layers of management" and to eliminate the "indirect costs of lower priority projects." In fact, Meta announced earlier this week that its sunsetting its NFT features on Instagram and Facebook.
"A leaner org will execute its highest priorities faster," Zuckerberg wrote. "People will be more productive, and their work will be more fun and fulfilling."
Still, Zuckerberg recognizes the gravity of the situation and the toll it will take on his workers.
"This will be tough and there's no way around that," Zuckerberg wrote. "It will mean saying goodbye to talented and passionate colleagues who have been part of our success. They've dedicated themselves to our mission and I'm personally grateful for all their efforts. We will support people in the same ways we have before and treat everyone with the gratitude they deserve."