Facebook parent Meta is reportedly considering another round of layoffs.
Meta, the parent of Facebook, could go through another round of layoffs, according to reports.
CEOs often see layoffs as a way to fix a company’s problems, but the cuts can do lasting damage.
Doing layoffs more than once can look like managerial incompetence, one expert told Insider.
Recent reports that Meta CEO Mark Zuckerberg is mulling another round of massive layoffs likely sparked an unnerving sense of déjà vu among employees — and for good reason.
Just a few months ago, Meta conducted its first-ever round of mass layoffs. The parent of Facebook, Instagram, and WhatsApp said in November it would let go of roughly 11,000 staffers, or 13% of the company.
Now, more cuts might be in the works. Insider reported that a common expectation within the company is that about 10% of the workforce — some 7,500 people — will be let go, perhaps this week. In February, Zuckerberg said 2023 would be the company’s “year of efficiency.”
Meta wouldn’t be the only company to trim its workforce more than once in short order. Twitter’s workforce is about a quarter of the size it was when Elon Musk bought the company last year and began conducting rolling layoffs.
CEOs often see layoffs as a quick fix to a company’s problems, but employee purges can introduce lasting harm, including lower productivity and employee engagement, and decreased innovation. Multiple rounds of layoffs only exacerbate these outcomes, management experts told Insider.
Layoffs redux: Why did leaders miscalculate?
While a company’s motivation for making multiple cuts often stems from a desire to put its fiscal responsibility on full display to investors, that strategy can backfire. Instead, the move looks more like managerial incompetence, said Dana Sumpter, a former HR executive who’s now an associate professor at Pepperdine Graziadio Business School.
“Companies are racing to the bottom by trying to impress their shareholders and boards and show how cost-conscious they are,” she said. “Even when investors react in a positive way to a layoff announcement — ‘Good for Meta, they’re being conscientious’ — if the company needs to do it multiple times, there may be the question of, ‘Do they have their act together?'”
Salaries and employee benefits are typically one of a company’s largest expenses, accounting for as much as 70% of total business …read more
Source:: Business Insider