Meta Platforms To Cut More Staff In A Bid To Improve Efficiency
The layoff season is still far from over, as new reports suggest Meta is planning to cut more jobs. The news was broken by a major news outlet which suggests that Meta is still not done with job cuts. However, this will make the staff demoralized and demotivated.
This report comes at a time when Mark Zuckerberg stressed how 2023 would be the year of efficiency for the company. Similarly, he also talked about how the use of AI-powered tools will boost the productivity of the company.
In other words, Mark Zuckerberg wants to cut more jobs and introduce AI tools to get more work done. This comes at a time when the Meta stock is struggling and is already at a multi-year low.
Enough Room For Efficiency At Meta
The report didn't highlight the exact size of the layoff, but it seems there's still enough room for the company to further enhance efficiency.
If we looked back 2 years ago, the company had 58,000 employees working for it. And today, the company has 76,000 employees, which suggests that there's ample room to cut more jobs.
Although it will be bad news for the employees, the rating agencies & even the investors are happy with the efficiency mentality adopted by Meta.
As a result of new developments, one analyst issued a buy rating on the Meta stock with a target of $220. They also stressed how Meta has the potential to introduce new cost-cutting measures.
Moreover, Meta can improve its profitability by decreasing the number of employees. And when the advertising business improves, it will lead to higher profitability.
After the release of this report, Meta shares were up by 2% during the pre-market session. And experts believe that it may see further upside when the US session opens later today.
Even if Meta goes back to how much headcount it had 2 years ago, it seems that the company can cut up to 18000 jobs!