After massive lay-offs, Meta told investors that it will finally end its hiring freeze and increase its employee headcount in the coming months of 2023. Mark Zuckerberg, CEO of Meta, said the tech giant is “through the major layoffs” and will now focus on creating stability for employees and hiring new folks, which will likely “spill into 2024,” in the latest earnings call.
Several employees across big tech companies like Meta, Twitter, Coinbase, etc., carried out heavy layoffs in 2022. However, Meta’s explicit assurances to investors about a growing headcount in the future hint that the worst of this ordeal may be over for this sector.
Major layoffs since November 2022: Zuckerberg announced the sacking of 11,000 employees in November last year via a letter to his employees. At the time, the CEO said it was due to his “wrong” estimation of a surge in e-commerce in post-Covid-19 times. The company then cut another 10,000 employees in March 2023 and, as per The Guardian, around 4,000 employees lost their jobs in April this year.
In a recent meeting with investors regarding Meta’s second quarter performance Zuckerberg said, “We ended the second quarter with over 71,400 employees, down 7 percent from the first quarter. Our second quarter headcount still included roughly half of the approximately 10,000 employees impacted by the 2023 layoffs. We expect that our third quarter headcount will no longer include the vast majority of impacted employees.”
Hiring numbers to grow in the third quarter: Susan Li, Chief Financial Officer (CFO) of Meta, said that while the company has been “in a broad-based hiring freeze for a number of months,” the company’s headcount will grow in the coming quarter.
“The growth is going to evolve our workforce towards a more technical mix, which is also higher cost for us. So, that’s really what’s going to play through into the payroll growth next year,” said Li adding that some teams made deeper cuts in the layoff process to “retool the skill sets” on their teams.
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