Meta Has Delayed Some Teams’ Budgets Because of New Layoffs

Key Points:

• Meta has delayed the finalization of the budgets of many teams as they prepare for a fresh round of job cuts.
• In November last year, Mark Zuckerberg’s company cut more than 11,000 jobs or 13% of its workforce.
• Meta reported its financials for the fourth quarter of 2022 on February 1, highlighting a loss of $4.28 billion from Reality Labs, which is trying to turn the company’s metaverse ambitions.

Parent company Facebook Meta has delayed the finalization of some teams’ budgets because the company is preparing for a new round of layoffs. The company is constantly going through hardships and incurring losses for the metaverse idea.

Billionaire Mark Zuckerberg’s technology company has delayed finalizing the budgets of many groups as it prepares for a fresh round of job cuts, the Financial Times reported on Saturday.

In recent weeks, the company was still determining its budget and future headcount, two Meta employees familiar with the situation said. Earlier this month, Meta announced that it expects to spend between $89 billion and $95 billion by 2023.

Last November, Meta cut more than 11,000 jobs or 13% of its workforce. Udland estimates if the money is divided. Equally, each person will receive about $ 88,636.

Udland’s information was later agreed upon by Daniel Ives, CEO and famous analyst specializing in the capital at investment firm Wedbush Securities. According to Ives, the actual amount Meta spends on employees will be more for senior positions and less for other employees.

Meta reported its financials for the fourth quarter of 2022 on February 1, highlighting a loss of $4.28 billion from Reality Labs, which is trying to turn Meta’s metaverse ambitions into reality. For the whole year of 2022, this segment alone has lost $ 13.7 billion, exceeding the figure of $ 10 billion in 2021.

According to CEO Meta, last year, the company spent more than $3.7 billion on restructuring efforts, including severance payments and early termination of some leases or office consolidation. “We may incur additional restructuring fees as we aim to go further to increase efficiency,” he said.

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