The world’s leading tech company Meta is once again moving towards a big change. After a long time of speculation, the company has now officially made it clear that it is going to lay off thousands of its employees. This decision has created a stir in the tech industry, especially at a time when companies are investing heavily in Artificial Intelligence (AI). Meta has confirmed that it will be reducing its global workforce by around 10 per cent, affecting around 8,000 employees. The company informed its employees about this decision through an internal memo.
According to Bloomberg report, this memo was sent by Meta’s Chief Human Resources Officer Janelle Gale. He told that large scale changes are being made in the company, under which the retrenchment process will start on May 20. Janel also said in her message that the company usually shares such information when all the details are completely ready, but this time the information was already out, so it was necessary to inform the employees in time.
Increasing trend of layoffs in tech companies
This step of Meta is not alone. In recent months, many big tech companies like Oracle, Amazon and Microsoft have also laid off thousands of employees. The focus of these companies is now rapidly moving towards Artificial Intelligence, due to which traditional roles are being cut.
Not only layoffs, recruitments also stopped
Meta has also clarified that it is not only reducing the number of employees but is also putting a ban on new recruitments. About 6,000 such posts, which were planned to be filled earlier, will now remain vacant. This means that the company is focusing on reducing its expenses and making better use of resources.
Possibility of further layoffs
According to reports, this retrenchment cannot be limited to just one phase. It is estimated that the company may lay off 8,000 more employees in future. If this happens, overall about 20 percent of Meta’s employees may be affected. This will be a major structural change for the company.
layoffs have taken place before
This is not the first time that Meta has taken such a step. Even before this, the company had fired about 700 employees. These also included employees of the Reality Labs division, who were working on the Metaverse project. The main reason behind this decision of Meta is to cut costs and increase investment for future plans.
Janel Gale said in her memo that the company wants to make its operations more effective and it is necessary to save resources for investment in other important areas. Although he did not say it directly, it is believed that this investment will be mainly related to Artificial Intelligence.
Increasing focus on AI
According to reports, Meta is spending huge amount on AI infrastructure. The company is keeping AI at the center of developing new technologies and improving its platform. Not only this, the company has also started tracking the working methods of employees, such as mouse movements and keyboard activities, to train AI. However, this step has also been opposed by the employees. Meta CEO Mark Zuckerberg has already said that AI will completely change the workplace in the coming times. According to him, by 2026 AI can bring a big change in the way of working.
Compensation Package for Employees
The company has also announced compensation for the employees affected by the retrenchment. Employees working in America will be given 16 weeks’ basic salary. Apart from this, two weeks additional payment will also be made for every year of service. Meta has also said that it will cover the health expenses of its employees and their families in the US for 18 months.
The company has also decided on a compensation package for employees working outside America. However, this package may differ according to the rules and circumstances of different countries. Additionally, Meta will also provide career support to affected employees to help them find new jobs.
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