Meta, the parent company of Facebook and Instagram, is planning a fresh round of job cuts and will lay off thousands of employees as soon as this week, according to a Bloomberg report quoting people familiar with the matter.
This comes after the company in November 2022 also laid off 11,000 employees or 13 per cent of its total workforce.
The report, quoting the sources, said the second round of layoffs is being driven by financial targets and is separate from the “flattening” of organisation. Meta is also working to flatten its organisation, giving buyout packages to managers and cutting whole teams it deems non-essential.
The latest round of layoffs is likely to be finalised in the next week, according to the Bloomberg report.
The layoffs are part of a plan to reduce costs at Meta following disappointing earnings and a drop in revenue. The staff reductions, part of the first major budget cut since the founding of Facebook in 2004, reflect a sharp slowdown in digital advertising revenue, an economy wobbling on the brink of recession and Meta CEO Mark Zuckerberg’s heavy investment in a speculative virtual-reality push called the metaverse.
Severance Package After November Layoffs
Zuckerberg while announcing the November layoffs gave clarity on what will happen to employees after their exit from the company. Following are the benefits that employees were entitled to after sacking.
Severance Package: Zuckerberg had said Meta will be pay 16 weeks of base pay and two additional weeks for every year of service, with no cap.
Paid Time Off (PTO): The company will pay for all remaining PTO time. Paid time off or PTO is a human resource management (HRM) policy that provides employees with a pool of bankable hours that can be used for any purpose.
Restricted Stock Units (RSU) Vesting: Everyone impacted will receive their November 15, 2022, vesting. An RSU is an award of stock shares, usually given as a form of employee compensation
Health Insurance: Zuckerberg had said the company will cover the cost of healthcare for people and their families for six months.
Career Services: The Meta CEO also said the firm will also provide three months of career support with an external vendor, including early access to unpublished job leads.
Immigration Support: “I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need,” Zuckerberg had said.
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