Meta and The Year Of Efficiency
The leadership at Meta is naming this year as the year of efficiency. The Year of Efficiency. That seems apt coming from a technology company. If you think about it, it having to dedicate a year to efficiency implies that you were inefficient. Maybe even that inefficiency was the modus operandi for quite some time.
The firm is changing things around, it is righting its previous wrongs and embracing this year of efficiency.
What does the year of efficiency hold for Meta-mates and for the company moving forward? Let’s find out.
The Year of Efficiency and Layoffs at Meta
The year of efficiency, so far, has meant layoffs. If we are talking about layoffs, we can say that a sign of the future was present in 2022, when Meta started to announce layoffs. It started with 11,000 layoffs, amounting to around 13% of the Meta-mate workforce.
The firm indicated that it hired an excessive amount of employees over the pandemic and is now in the process of right sizing.
Then it noted this year that it would layoff employees in further batches.
Cost Cutting Across the Board at Meta
Meta is reducing headcount while focusing on key projects. Cost cutting applies to lowering budgets, minimizing overall perks, and lowering the total real estate that it holds. It is going as far as implementing desk sharing, going on a hiring freeze, and accounting for lower costs in infrastructure.
Remember this is started in 2022 as monetary conditions across the world tightened.
The New Focus in the Year of Efficiency at Meta
What does the new focus in the year of efficiency look like? Here is a little excerpt from Zuckerberg.
“Our efficiency work has several parallel workstreams to improve organizational efficiency, dramatically increase developer productivity and tooling, optimize distributed work, garbage collect unnecessary processes, and more. I’ve tried to be open about all the work that’s underway, and while I know many of you are energized by this, I also recognize that the idea of upcoming org changes creates uncertainty and stress. My hope is to make these org changes as soon as possible in the year so we can get past this period of uncertainty and focus on the critical work ahead” – Zuckerberg
In summary, Meta will focus on keeping things as simple as possible across the business.
Here is a brief overview of what that looks like for Meta.
- Outlining an efficiency program to make Meta a better technology company and improve financial performance.
- Flattening the organizational structure and reducing headcount by around 10,000 people or more.
- Investing in tools to increase developer productivity and process improvements.
- Aiming for a more optimal ratio of engineers to other roles.
- Investigating the benefits of in-person time to build relationships and get more done. In-person interactions will be encouraged as to build relationships and allow the team to work more effectively.
- Preparing for a prolonged economic reality and setting a financial plan to invest heavily in the future.
- Encouraging people to focus on the work they can control and supporting their teammates.
- The cultural principles that are guiding the efficiency work are: flatter is faster, leaner is better, keeping technology the main thing, and investing in tools to get more efficient.
- During this period of change, the team must focus on doing great work and supporting teammates.
Meta Will Seek More Accomplishments As It Becomes Agile and Focused
A few of the key focus areas are likely to be
- AI Discovery Engine
- Reduction in headcount to 66,000 or below.
The year will be interesting as Google, Meta, and Microsoft focus on AI integrations to improve overall operations and to improve the customer experience.
It looks like these are first steps to a decade of efficiency.