Mark Zuckerberg Explains the Reasons Behind the Surge in Tech Layoffs Over the Past 2-3 Years
Tech companies have been laying off from 2021 until 2023, and early signs this year suggest it won’t be slowing down anytime soon. The likes of Google, Amazon and even Meta have pulled the plug on several projects, cut product teams and rethought their plans for the future. So what are the main reasons for these layoffs and when will it end?
Meta CEO Mark Zuckerberg has shared his views on this matter in a recent interview, where he also walks us through the strategy of tech companies in recent years, as they have planned for the pandemic and beyond.
Zuckerberg was quoted as saying that the first wave of layoffs in the pandemic was forced after overpaying and a decline in digital sales and overall business. The head of Meta then highlights the sudden change in strategy in the industry where people started to see the benefits of a lighter system. “Obviously it was really hard, we parted ways with a lot of talented people we cared about. But in a way, losing weight makes the company more efficient, Zuckerberg mentioned.
While it’s understandable that companies chose to cut costs rather than continue to retain a bloated workforce, experts say the layoff decision could have been handled gradually rather than pushing everyone out the door at once. But it seems that leanness is not the only reason for these layoffs in recent months, especially since the beginning of 2024, when artificial intelligence has become the primary investment target for most tech giants.
Zuckerberg interestingly noted that AI wasn’t the main reason his company laid off thousands recently, but that tune has likely changed as industry dynamics have changed. To be fair, companies see no problem with these decisions, especially if their market value increases, which means investors want to focus on the business rather than other aspects. The Meta boss is also busy covering Apple’s arrival with the Vision Pro headphones, which he reviewed and compared to his company’s Meta Quest headphones.
