Mark Zuckerberg explains the wave of technology layoffs
Mark Zuckerberg, the CEO of Meta, has recently announced a series of layoffs, which he describes as "painful" but necessary after a period of over-hiring. In a podcast interview on February 16, Zuckerberg explained that staff cuts have brought significant benefits to technology companies. He went on to say that companies must adapt to the post-Covid-19 era, where social distancing measures have led to increased sales on e-commerce platforms and huge profits for the online advertising industry. However, as the pandemic has passed and advertising rates have decreased, many companies have realized that they were over-recruiting, and as a result, they were forced to cut staff.
Zuckerberg argues that while layoffs can be difficult in the early stages, they have long-term effects. For example, Meta has undergone two major layoffs since 2023, but it has also been a "productive year" for the company, with growth milestones and the stock price reaching its highest level since its founding.
According to Zuckerberg, downsizing the team not only reduces compensation costs but also helps reduce management layers, making product decisions easier to pass. He cites Meta's launch of the Threads platform, a competitor of social network X, as an example of this point of view. "Threads is built by a relatively small team of engineers instead of a bloated collective full of middle management levels," he said. "This also changes the company culture, helping to create quality products quickly."
Amazon, Twitch, and other technology giants have also announced personnel adjustments this year, with layoffs being attributed to the need to streamline operations and adapt to the post-Covid-19 era.
Zuckerberg argues that while layoffs can be difficult in the early stages, they have long-term effects. For example, Meta has undergone two major layoffs since 2023, but it has also been a "productive year" for the company, with growth milestones and the stock price reaching its highest level since its founding.
According to Zuckerberg, downsizing the team not only reduces compensation costs but also helps reduce management layers, making product decisions easier to pass. He cites Meta's launch of the Threads platform, a competitor of social network X, as an example of this point of view. "Threads is built by a relatively small team of engineers instead of a bloated collective full of middle management levels," he said. "This also changes the company culture, helping to create quality products quickly."
Amazon, Twitch, and other technology giants have also announced personnel adjustments this year, with layoffs being attributed to the need to streamline operations and adapt to the post-Covid-19 era.
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