Mark Zuckerberg explains reasons behind current tech company layoffs

Meta, Zuckerberg’s company, went through a major staff cut, and they’re also getting rid of some management layers to be more efficient. For instance, Instagram is cutting technical program manager roles, and this is happening in other parts of Meta too.

So, to break it down, companies are choosing to be smaller on purpose, thinking it makes them work better, even after the challenging times of the pandemic.

In the podcast, Zuckerberg shared that companies are still focused on efficiency today. Many are exploring ways to restructure, streamline management levels, and shift towards a more efficient model.

Even with strong earnings, companies like Microsoft and Google continue downsizing. CEOs at firms like Amazon have expressed intentions to restructure and invest in AI-related areas. However, according to Zuckerberg, AI isn’t the primary factor in these changes.

The Meta CEO clarified, “AI wasn’t a significant factor for them in this. It began with excessive hiring and transformed into a dedication to excel by functioning as a more streamlined company.”