Mark Zuckerberg's Wealth Rises as He Plans to Sack 10,000 More Workers After Initial Cuts in November

Mark Zuckerberg's Wealth Rises as He Plans to Sack 10,000 More Workers After Initial Cuts in November

  • Mark Zuckerberg announced that his company, Meta, will embark on another round of layoffs
  • He said the company will sack about 10,000 workers and close 5,000 job openings yet to be filled to cut cost
  • Zuckerberg's announcement comes as his wealth climbed to $71 billion after earning $4.57 billion in 24 hours

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Meta CEO Mark Zuckerberg says the company will lay off more workers and incur restructuring costs ranging from $3 billion to $5 billion.

Zuckerberg also warned that economic problems would continue in many organisations for years.

Mark Zuckerberg, Facebook, Instagram, WhatsApp, Meta
Meta's CEO, Mark Zuckerberg. Credit: Bloomberg / Contributor
Source: Getty Images

Meta says operational costs will reduce after sack

In a blog post, Zuckerberg shared the company's plans and said that more organisation leaders would announce restructuring plans based on flattening organisations, cancelling lower-priority projects, and reducing employment rate.

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He stated that the tech giant plans to close 5,000 additional open roles that should have been filled.

CNBC reports that the tech company announced the job cuts and anticipates reduced expenses in 2023, from $86 billion to $92 billion, as a result.

The new round of job cuts comes after the company sacked about 11,000 workers in November, accounting for about 13% of its workforce.

Zuckerberg lays out plans for Meta

Zuckerberg named 2023 the year of efficiency for Meta, which, according to the tech billionaire, the firm wants to become more vital and defter in its operations.

Zuckerberg said:

"We are a technology company, and our ultimate output is what we build for people."

He added that the company would also increase each manager's direct reports as part of the restructuring.

Metaverse costing Meta billions

The company has spent billions of dollars developing virtual reality and augmented reality technology to build the metaverse, a digital universe.

The company's arm, saddled with realising the metaverse, lost about $13.2 billion in 2022.

Also, e-commerce giant Amazon announced a new round of layoffs in January, affecting 18,000 employees across multiple divisions.

Zuckerberg's wealth balloons

The development comes as Zuckerge saw an increase in his fortune, earning about $4.57 billion on Tuesday, March 14, 2023, as Meta's stock traded 7%, putting him in the 13th spot on Bloomberg's Billionaire Index.

The current surge in his wealth puts his total net worth at $71 billion, below Mukesh Ambani, the Indian energy tycoon.

“He’s Back”: Mark Zuckerberg gains $13 billion in less than 24 hours as Meta shares surge earlier reported Mark Zuckerberg, Meta CEO, has staged a stunning comeback with a massive gain in the last 24 hours.

The share price of Meta rose sharply by over 22% in the last two days, sending Zuckerberg’s net worth to a 12-year high.

The growth extends the company’s winning streak, bringing this year’s gain to about 22% since it was quoted 12 years ago.


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