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Mass layoffs and absentee bosses create a morale crisis at Meta

"So many of the employees feel like they're in limbo right now," said Erin Sumner, a global director of human resources at DeleteMe, who was laid off from Facebook in November

Meta

NYT San Francisco
“Raise your hand if you know who is getting fired?” a Meta employee wrote in an online chat group for the company’s engineers this month. “Fire emoji if you think it’s a dumpster fire.”

In response, his colleagues posted dozens of tiny flame emojis.

“I’m already fired,” added a former Meta employee who worked in the company’s business division for nearly four years before most of his team was laid off this year. “But who can keep track?”

Mark Zuckerberg, Meta’s chief executive, has declared that 2023 will be the “year of efficiency” at his company. So far, efficiency has translated into mass layoffs. He has conducted two rounds of cuts over the past six months, eliminating more than 26,000 people, or nearly 30 per cent of his company’s work force.
 

At the same time, some of Meta’s top executives have moved away and are managing large parts of the Silicon Valley company from their new homes in places like London and Tel Aviv.

The layoffs and absentee leadership, along with concerns that Zuckerberg is making a bad bet on the future, have devastated employee morale at Meta, according to nine current and former employees, as well as messages reviewed by The New York Times.

Employees at Meta, which not long ago was one of the most desirable workplaces in Silicon Valley, face an increasingly precarious future. The company’s stock price has dropped 43 per cent from its peak 19 months ago. More layoffs, Zuckerberg has said on his Facebook page, are coming this month. And for the first time, some of those cuts could be in engineering groups, which would have been unthinkable before the trouble started last year, two employees said.

“So many of the employees feel like they’re in limbo right now,” said Erin Sumner, a global director of human resources at DeleteMe, who was laid off from Facebook in November.

“They’re saying it’s Hunger Games meets Lord of the Flies, where everyone is trying to prove their worth to management.”
Meta, which owns Facebook, Instagram and WhatsApp, is not the only big tech company that has hit the brakes on spending. Amazon, Microsoft, Google, Salesforce and others have laid off thousands of workers in recent months, shed office space, dropped perks and pulled back from experimental initiatives.

But Meta appears to face the most challenges. Last year, the company reported consecutive quarters of declining revenue — a first since it became a public company in 2012.

While Meta’s peers are chasing a wave of innovation in artificial intelligence, Zuckerberg has made a big bet on the metaverse, an immersive online world. But it is unclear if consumers will embrace his vision in the way he hopes. While the company has sold 20 million virtual reality headsets — more than any other company producing similar tech — it has struggled to keep customers returning regularly to use the product.

Many workers at Meta had already been sceptical of Zuckerberg’s shift toward the metaverse. Those concerns have grown as consumer enthusiasm for the virtual world has lagged, the employees said.

The absence of many top executives from Meta’s headquarters in Menlo Park, California, is compounding worries. Zuckerberg, 38, is on parental leave after the birth of his third child, three Meta employees said, but is regularly meeting with executives on important topics. (AI is at the top of that list.)

Even though Zuckerberg has encouraged rank-and file employees to return to the company’s headquarters, several of his top lieutenants have moved away. While the executives have been joining Meta’s weekly meetings through video chats, their absence from the Menlo Park offices has been felt, employees said, especially since Zuckerberg recently stressed that he expected employees to return to the office.

A spokesman for Meta said its executives continued to travel regularly to the Silicon Valley offices.

Within Meta, there is pressure to demonstrate that people are working hard, two employees said. Intense scrutiny has come in recent workplace reviews, which the management consultancy firm Bain and Company is assisting. Workers, especially in middle management, are being asked to justify why their jobs are crucial to Meta’s goals.

Some employees are trying to make themselves look busier, two people said. That has made people more possessive about their work, the people said, which has meant less collaborating with co-workers.

While the first two rounds of layoffs largely affected business and recruiting teams, the cuts expected this month will be the first to affect tech departments, including engineers, which has surprised employees, said four employees, who were not authorised to speak to reporters. Insiders expect engineering cuts to hit teams inside WhatsApp, Instagram and Facebook, they said.

In one of his regular question-and-answer sessions with employees this year, Zuckerberg said that there was no “perfect way to do” layoffs, and that he wanted to err on the side of providing more information about upcoming layoffs as news of the cuts began to leak to the press. The Information previously reported on the meeting.

Meta employees have created memes and inside jokes about how much time workers have left. In messaging groups and workplace chats in recent weeks, they have been using skull-and-bones emojis to signal to one another that they may be part of the layoffs, according to screenshots seen by The Times.

Those remaining have griped about reduced bonuses and perks. One engineer created a bot that would automatically calculate the loss in the value of Meta stock held by employees, part of their compensation package.

The company is also cutting back on some of its lavish perks, once considered necessary to attract top talent. Last year, Meta ended its free laundry service for employees and pushed dinner service later into the evening — a way to cut down on workers’ loading up free food to take home.
 
©2023 The New York Times News Service One person described the atmosphere as “cutthroat.” Meta declined to comment on internal matters.
 
 
 
 


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First Published: Apr 13 2023 | 12:09 AM IST

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