[HN Gopher] Meta is about to start its next round of layoffs
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Meta is about to start its next round of layoffs
 
Author : slyall
Score  : 120 points
Date   : 2023-04-18 21:22 UTC (1 hours ago)
 
web link (www.vox.com)
w3m dump (www.vox.com)
 
| dangrover wrote:
| I was there 2016-2022. The hiring boom in 2020 was definitely
| palpable. Entire vast orgs of teams who had no context on the
| problem they were solving, previous efforts, etc, because they
| were all so new.
 
| tayo42 wrote:
| Job market continues to be terrible... Ugh...
 
  | tootie wrote:
  | The job market is still pretty strong. It was wildly overheated
  | in 2021.
 
    | sberens wrote:
    | Hm, my tech job tracker[0] shows that it's probably one of
    | the worst hiring markets ever. Where do you see that the
    | market is still strong?
    | 
    | [0] https://www.hnhiringtrends.com/
 
    | thehumanmeat wrote:
    | Dec '22 Master's grad + math undergrad here. 4.0 GPA,
    | research + internship experience. 4 months of applications
    | and only 1 interview. Might as well apply to a shredder.
 
    | 0zemp1c wrote:
    | sure, if you feel like applying to the companies claiming
    | unfilled positions:
    | 
    | Chipotle, Mcd's, Target, Walmart
    | 
    | etc
 
| breatheoften wrote:
| Anybody want to predict how the market will react to this?
| 
| My take is that it will be a negative response. They've already
| shed a lot of workforce -- at this point they are still facing
| revenue growth loss more than they'll save in costs from reduced
| headcount -- and I think it's unlikely they'll be able to fire
| folks into a convincing story about future profit growth ...
| 
| To me it's clear they are no longer a machine able to turn ever
| expanding quantities of engineering talent into ever ever
| expanding monetary growth ...
| 
| so what's left to value in their overall organizational brand?
| 
| Personally I think they have an enormous amount of technical and
| organizational talent still in their ranks -- but ... why? Why
| will they stay and try hard to chase after whatever the next
| gravy fad train might be? Seems like it won't be the meta verse
| ... and if the next fad is really going to be "ai" -- could there
| really be enough talent that can really stomache the thought of
| allowing instagram to be the one to control the worlds first
| super intelligent agi ...?
 
  | nemo44x wrote:
  | > so what's left to value in their overall organizational
  | brand?
  | 
  | They have the worlds greatest dataset of everyone - their
  | posts, their photos, their social graph. Now train generative
  | AI on this.
  | 
  | They can build personal and unique AI products that no one else
  | can at their scale because they've sent the last 20 years
  | getting to know everything about everyone.
 
    | rossdavidh wrote:
    | In theory true. In practice, I'm not convinced that the
    | company Meta actually can do this.
 
  | 0xB31B1B wrote:
  | I think the markets have already priced this in, so there will
  | be basically no reaction. Zuck has more or less announced the
  | cuts already.
  | 
  | "but ... why?" they have a ton of talent because they pay top
  | of band and they staff their workforce with great employees.
  | Great talent wants to be paid well and wants to work with great
  | talent, meta has both.
  | 
  | For what its worth, meta has more employees now than they had
  | in Q1 2022, and these next rounds of layoffs put them at
  | staffing levels of like Q3 2021. The reality is that Meta and
  | other huge companies grew headcount faster than revenue, and
  | need to unwind some decisions they made.
 
  | fullshark wrote:
  | The market already reacted this is old news
 
  | yodsanklai wrote:
  | > Anybody want to predict how the market will react to this?
  | 
  | I suppose the markets have already reacted to this. This has
  | been announced a couple of months ago.
 
| retrocryptid wrote:
| I guess it's good to hear that Meta is still around.
 
| nostromo wrote:
| We're on the edge of an AI boom, and our tech giants are cutting
| rather than investing. This seems like a bad strategy.
 
  | btown wrote:
  | I'm reminded about the quote from The Incredibles: "When
  | everyone's super... no one will be."
  | 
  | When smaller AI startups start, say, showing more relevant
  | search results than Google does, and more personally relevant
  | posts than Meta - and IMO this is highly likely, since FAANG
  | have much more brand reputation to protect than those startups
  | and will necessarily move cautiously - perceptions will start
  | to rise that they are no longer the superpowers. But their
  | valuation multiples are based on them being the _only_
  | superpowers in their respective spaces. So if they want to
  | preserve shareholder value, _and_ they can 't depend on hype,
  | they'll have to cut aggressively so they can at least show
  | strong earnings per share.
 
  | geodel wrote:
  | I mean this is the time for companies with great strategy to
  | hire laid off folks. And VCs with great strategy can fund them
  | if companies are startup and lack resources.
 
  | femiagbabiaka wrote:
  | They're doing both.
 
  | oh_sigh wrote:
  | I'm ignorantly confident that no one in AI-related
  | divisions/projects are being cut at Meta.
 
  | aiappreciator wrote:
  | Meta made the dumb decision to invest in VR, rather than AI.
  | Those giant and expensive VR teams (Or the devs who made
  | horizon worlds...) aren't going to easily transition into AI.
  | 
  | AI generated content is the real core of metaverses, not VR
  | goggles. Hence Nvidia is actually making the right bet on its
  | 'omniverse' infrastructure.
  | 
  | Nvidia has made no layoffs, and I don't expect any within the
  | next 5 years.
 
    | abeppu wrote:
    | In FAIRness, their investments in AI research have been
    | significant in absolute terms. What may be lacking is the
    | connection between research and actual products, but I think
    | that's true everywhere. Though I agree VR has been a
    | distraction, I think it's misleading to say the investment
    | was in VR "rather than AI"; it's been in addition to.
 
    | yreg wrote:
    | Meta had their own successes in AI research. And I wouldn't
    | be so sure the goggles are going to stay irrelevant.
 
    | whiplash451 wrote:
    | VR googles absolutely are core for Meta as they want to own
    | the next (physical) platform.
    | 
    | They've learned the hard way the cost of not owning the
    | hardware layer.
 
      | candiddevmike wrote:
      | Ironic that their VR goggles run Android
 
| ShamelessC wrote:
| For the love of God, how many times have they done this at this
| point?
 
  | 1123581321 wrote:
  | Three.
 
    | mattnewton wrote:
    | And the stock ticks up every time
 
      | [deleted]
 
    | coolbreezetft22 wrote:
    | This article is still about the 2nd layoff, just confirming
    | the concrete time looks like where as previously just known
    | to be sometime around end of april / early may
 
      | 1123581321 wrote:
      | Ah, yes, you're right. I didn't realize they announced a
      | two step layoff in March. So, two, I guess.
 
        | laweijfmvo wrote:
        | It's a 3-step layoff actually. March, April, and May.
 
  | compiler-guy wrote:
  | Every single round of layoffs generates several stories:
  | 
  | 1. Announcement
  | 
  | 2. Identifying who is affected
  | 
  | 3. Start of the actual action
  | 
  | 4. Morale is affect this or that way
  | 
  | So we hear each action in painful detail. Not as painful detail
  | as the folks getting laid off of course. But each story hits
  | the front page.
 
  | paxys wrote:
  | Facebook/Meta has done exactly one mass layoff in its history
  | (in November 2022), and this is the second.
 
| beambot wrote:
| I've always heard the adage "cut once, cut deep" to avoid
| repeated destruction of morale. Anyone care to speculate about
| Meta's rationale behind repeated cuts?
 
  | rossdavidh wrote:
  | The rationale is probably something like, "oops; well crap".
  | Meta hasn't done this very often.
 
| fullsend wrote:
| Layoffs may be needed. But there should be a healthy dose of
| executives included for making those hiring decisions. And they
| should do it all at once. Doing it in waves is absolutely brutal.
 
  | rossdavidh wrote:
  | I worked for about a decade in the semiconductor manufacturing
  | industry, at a time (90's) when it was mostly moving out of
  | Silicon Valley (and then overseas). There was a clear pattern
  | that companies that hadn't done layoffs very often, were
  | clumsier (which often felt like "brutal" to those affected),
  | and the ones who had done it through several previous downturns
  | were less clumsy at it.
  | 
  | One of the lessons that companies learned, is that you should
  | do it all in one wave and be done with it (until the next
  | recession), rather than hoping that a small one is all you will
  | need, and realizing a few months later that you were wrong and
  | need to do it again.
 
  | mikrl wrote:
  | >they should do it all at once
  | 
  | When I was last laid off, the meeting was concurrent with my
  | friend on another team.
  | 
  | I was not laid off by my manager but my 2x skip; other members
  | of my team were laid off, presumably at the same time, by
  | someone else in our CoC.
  | 
  | So based on these observations, I think for security etc
  | reasons you need to lay people off all at once in batches. Too
  | easy for lag to create 'insider/outsider threat' situations.
  | 
  | Obviously my points are redundant if you just do it over email.
 
  | UncleOxidant wrote:
  | I was talking to a neighbor who works at AWS. Asked how it was
  | going and he said so far so good "I've survived 3 layoffs so
  | far". And I was like, "3 layoffs? I thought there was only one
  | so far?" and he replied that there have been a couple others
  | that weren't publicized so much.
 
| abledon wrote:
| but how much did they hire in the last 2-3 years?
 
| zwieback wrote:
| So from 86000 last year they'll be going to 60000ish this year?
| That is pretty severe. For those of us in mature industries
| cyclic layoffs are just how things are but 25% shrinkage is
| scary.
 
  | suddenclarity wrote:
  | Returning to 2020 levels. Says something about the hiring
  | frenzy that went on.
 
    | smnrchrds wrote:
    | It would show a decoupling between revenue and headcount,
    | which is certainly bad news for tech workers. Meta's revenue
    | in 2022 was 35% higher than 2020, 65% higher than 2019. If
    | tech companies have found a way to simultaneously increase
    | revenue and decrease headcount, the future of employment in
    | tech would not be as rosy as its past.
    | 
    | https://www.statista.com/statistics/268604/annual-revenue-
    | of...
 
      | whiplash451 wrote:
      | There's significant latency between hiring and revenue.
      | 
      | There's probably some Elon effect happening here too ("if
      | he can do it, I should be able to do it too!")
 
        | phpisthebest wrote:
        | Facebook should go all in, cut 80% out...
        | 
        | "If you're not trying to run some sort of glorified
        | activist organization and you don't care that much about
        | censorship, then you can really let go of a lot of
        | people, turns out," -- Elon Musk..
 
      | RhodesianHunter wrote:
      | Of course you can't make that case unless the growth in
      | revenue continues as such.
 
      | oxfordmale wrote:
      | In one of my previous company, there was a "keeping the
      | light on" plan. It specified the minimum number of people
      | needed to run a company. However, CEO was clear this was
      | just managed decline and not a viable mode of operating the
      | business.
      | 
      | It allowed the company to meet regulatory obligations.
      | However, overtime, customers would leave because of the
      | poor service.
      | 
      | Meta can likely run effectively with even less Engineers.
      | However, the lack of exciting projects will prevent them
      | from attracting top talent. Overtime their product offering
      | will become less interesting than their competitors.
      | 
      | Napster, Tumblr and Yahoo are still around, however, they
      | are a shadow of what they once were.
 
        | svachalek wrote:
        | I suspect Twitter is also "dead walking" at this point.
 
        | ethbr0 wrote:
        | Did Twitter need to be more than keep the lights on?
        | 
        | I thought HN's refrain 2 years ago was how ridiculous it
        | was that a simple product that didn't need to add
        | features had a large headcount + how many businesses
        | would be better off running stable instead of for growth.
        | 
        | Well, here we go.
 
        | kevinventullo wrote:
        | I suspect "lack of exciting projects" is not driving
        | people away as effectively as "tumbling stock price" and
        | "likelihood of getting fired".
 
      | majormajor wrote:
      | Things happen based on rates of change now, not just
      | totals.
      | 
      | 2021 was an abnormally high jump in revenue from 2020 for
      | Meta. 2022 was a drop in revenue, but roughly a return to
      | trend (there's a quite linear line from 2016 to 2022
      | revenue-wise).
      | 
      | It looks like they hired based on a wrong guess about Covid
      | revenue growth acceleration being a longer-lasting thing
      | than it was, and now that their revenue growth path is back
      | to their old trend, they can't justify all of that.
 
      | acchow wrote:
      | Most of the headcount is to maintain an advantage over
      | competitors in a competitive market, thus ensuring future
      | revenues.
      | 
      | It's mostly not for this year's revenue.
      | 
      | Related to this, the government now requires accounting
      | Software Developer salaries to be amortized over 5 years,
      | instead of all being booked in the year you pay them.
      | 
      | Edit: oops, the R&D portion of SWE salaries.
      | 
      | Edit2: Related to ensuring competition, this means that if
      | your competitors slow down then you can too. If your
      | competitors lay off, then you probably can to.
 
        | lotsofpulp wrote:
        | *The R&D portion of software developer salaries.
 
  | throwbadubadu wrote:
  | I don't get what facebook is doing with all that headcount in
  | relation to their product and in comparison to other
  | companies... even 20k feels too high, much too high still?!
 
  | throwaway019254 wrote:
  | They had 45k employees three years ago.
  | 
  | Maybe they were really hiring too much?
 
  | miohtama wrote:
  | Elon Musk has shown you can lay off 80% and still have the
  | service is running.
 
    | coolbreezetft22 wrote:
    | It's now riddled with bugs and every other "reply" is an ad
    | for a product completely unrelated to whatever tweet it's
    | replying to.
    | 
    | No one outside of twitter was predicting it would just
    | suddenly collapse, but instead a slow degradation of quality
    | (ironic given that twitter is being marketed as the "#1 most
    | accurate source of information on the internet")
    | 
    | The top tweet under every "More Tweets" section is always a
    | childish Musk tweet with a 420 or 69 reference in it
 
      | ghostpepper wrote:
      | This hasn't been my experience but maybe that's due to
      | running an adblocker
 
      | [deleted]
 
      | UncleOxidant wrote:
      | And yet plenty of people are still there on twitter. There
      | have been plenty of reasons to leave and some have
      | (Mastodon is now up over 11M users) I count myself as one
      | of those leavers. But so far there hasn't been a mass
      | exodus, there have been several small exoduses. When you
      | boil the frog slowly it tends to stay in the pot: that
      | seems like what we're observing at twitter. The degradation
      | has been slow enough that most users are ok with it, at
      | least so far.
 
      | phpisthebest wrote:
      | >>every other "reply" is an ad for a product completely
      | unrelated to whatever tweet it's replying to.
      | 
      | I find that very ironic. For years I have seen people
      | complain about "target ads" and companies like twitter
      | spying on everyone.
      | 
      | Now if they are targets some how that is also bad...
      | 
      | Amazing....
      | 
      | Though I will say I have seen a dozen HPE GreenLake ads on
      | twitter and still have no idea what they are trying to sell
      | me...
      | 
      | >> instead a slow degradation of quality (ironic given that
      | twitter is being marketed as the "#1 most accurate source
      | of information on the internet") The top tweet under every
      | "More Tweets" section is always a childish Musk tweet with
      | a 420 or 69 reference in it
      | 
      | These are not mutually exclusive... I find new twitter to
      | be very informative and entertaining
 
        | 8ytecoder wrote:
        | * * *
 
    | RhodesianHunter wrote:
    | The point of the business is not to keep the service running
    | but to make a profit, and by all accounts Twitter is
    | dramatically worse off on that front.
 
      | phpisthebest wrote:
      | >>and by all accounts Twitter is dramatically worse off on
      | that front.
      | 
      | And what accounts are those?
 
        | ctvo wrote:
        | The accounts by Elon where he cut its valuation from 44
        | billion to 20 billion to start. Or do we think its
        | valuation dropped more than half with record breaking
        | profits that aren't disclosed?
        | 
        | We can use the accounts from advertisers and firms that
        | have shared they no longer work with Twitter too.
 
        | phpisthebest wrote:
        | Valuation is not profit. He massively over paid for
        | twitter, everyone knew that, he knew that....
        | 
        | Twitter was never worth that, realistic valuation before
        | the buyout announcement was closer to 25-30 billion, and
        | they most likely were going into poor financial results
        | that would have tanked the value further down to probably
        | 20 or less.
        | 
        | >We can use the accounts from advertisers and firms that
        | have shared they no longer work with Twitter too.
        | 
        | Lots of virtue signalling, many have come back, and most
        | cut their ads spend for other reasons and on all
        | platforms but used the twitter controversy to score some
        | political points with the ESG crowd.
 
        | tick_tock_tick wrote:
        | I mean the valuation drop had little to do with him and
        | was largely driven by macro or are we pretending other
        | social media companies didn't get cut in half during the
        | same period?
        | 
        | Facebook is still way off the highs and other's like Snap
        | are floating around $10 when it peaked at $80. Twitter
        | tanked from the changing macro environment not anything
        | he did.
 
        | mullingitover wrote:
        | I believe that would be accounts receivable.
 
        | what-the-grump wrote:
        | considering Elon has cut 80% and still can't turn profit
        | there isn't much counting going on.
 
    | zascs wrote:
    | [dead]
 
    | [deleted]
 
    | 650REDHAIR wrote:
    | For how long though?
 
      | QIYGT wrote:
      | Even if it could run forever, just keeping it running isn't
      | good enough. If you never make any improvements, your users
      | are going to go to a different service that does.
 
        | dnissley wrote:
        | Twitter already proved this isn't the case over the last
        | 10 years.
 
| guestbest wrote:
| Maybe META can shed users, too, and replace them with AI chat
| bots
 
  | candiddevmike wrote:
  | That already happened years ago, in my experience
 
| yodsanklai wrote:
| Good luck to those employees waiting to know their fate. It must
| be very stressful.
 
| rvz wrote:
| Engineers _obviously_ affected.
| 
| As long as the stock goes up after buying at $88, then keep it
| going to save money.
| 
| Meta will survive. It just needs to unload more unnecessary hires
| and adjust to save more money in the long term.
| 
| All caused by the over hiring mania followed by the unsustainable
| zero interest rate phenomenon and a decade long quantitative
| easing bubble that had to end.
 
  | zwieback wrote:
  | The zero interest rate and quantitative easing was available to
  | non SV companies, though, and they went through much milder
  | bubbles. There's definitely something specific about tech
  | mania.
  | 
  | And now AI company will hoover up the talent, maybe the
  | monetary and fiscal policies will slow that bubble down a bit.
 
    | laweijfmvo wrote:
    | This just feels like a convenient story. Why would tech
    | companies, who bring in billions in profits each quarter, be
    | so dependent on zero interest loans? If anything, the non-SV
    | companies reducing their ad spend would be a bigger
    | contributor, assuming that has happened?
 
      | fullshark wrote:
      | Ignore Meta, think about how many nonprofitable tech
      | companies were built by basically throwing money at growth
      | the last 10 years. Then think about how early investors
      | were rewarded, not by turning profitable, but by going
      | public or getting acquired. That entire pipeline was built
      | by cheap money.
 
      | mullingitover wrote:
      | > Why would tech companies, who bring in billions in
      | profits each quarter, be so dependent on zero interest
      | loans?
      | 
      | At least in the case of Facebook and Google, they were
      | getting revenue from the rest of the startups that were
      | dumping cheap money into marketing for growth. When that
      | cheap money dries up for the startups it dries up for GOOG
      | and FB as well.
 
      | zwieback wrote:
      | The ones that bring in billions in profits are less
      | dependent, of course, but even those will carry loans on
      | their books. Why not, if money is free. Each large
      | corporation has essentially an investment bank on the
      | inside.
 
      | vineyardmike wrote:
      | Because development has high upfront costs. You need to
      | build something before you can collect any money. That
      | means lots of expensive engineers. When building is nearly
      | free (free money now at expense of tomorrow's cash flow),
      | you build things to sell tomorrow.
      | 
      | Businesses of all sorts get loans when the rate is good.
      | It's a business cash flow thing.
      | 
      | Look at the SEC filings for all big tech companies. They
      | discuss their billions in debt.
 
      | mstipetic wrote:
      | Because of growth expectations brought by their evaluations
 
| gatefun wrote:
| Facebook's Android application has been riddled with bugs for
| months, overrun with ads and now they are cutting the workforce.
| It'll be interesting.
 
  | ceejayoz wrote:
  | On the developer side, they're even closing down their API bug
  | tracker, having first dropped from 95% 30 day resolution to
  | 56%.
 
  | yevpats wrote:
  | Ironically this will most probably help as most companies now
  | understand that putting more people on the same piece of
  | software doesn't really help but make it worse.
 
    | whiplash451 wrote:
    | You still need to keep the remaining employees engaged,
    | though.
    | 
    | Adding workforce is not useful != removing workforce is
 
    | gatefun wrote:
    | I hope it helps them. At my company, there were efforts to
    | compartmentalize our web application to make it more scalable
    | for adding more features inside it. I left before I saw this
    | effort in action, but the principles it was based on were
    | solid. I believe some applications could be compartmentalized
    | so that adding more features/teams would bring more value
    | (without making it worse) however, I might be wrong.
 
  | slig wrote:
  | Facebook's apps on Android were always second-class citizens.
 
| annadane wrote:
| *Facebook
 
  | sberens wrote:
  | Interesting, about 95% of your comments in the last year are
  | saying something negative about Meta/Zuck.
 
| atleastoptimal wrote:
| Perfect time for me to be looking for a new job :/
 
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