“At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years. Higher interest rates lead to the economy running leaner, more geopolitical instability leads to more volatility, and increased regulation leads to slower growth and increased costs of innovation. Given this outlook, we’ll need to operate more efficiently than our previous headcount reduction to ensure success.” (Mark Zuckerberg, 14 March 2022, on laying off another 11k employees and closing 5k opening roles)
Now, the press release is long, but here are some key messages:
1. META employed on average +26% YoY; still, more room to cut
2. if Twitter can be run with 20-30% of initial stuff, why not META? Shareholders are asking for it
3. The “year of efficiency” should be seen in real results. Large “cost centers” should be analyzed and decided accordingly
4. Other companies will copy Twitter and Meta in this regard.
???? Read the entire post here.