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    Meta Platforms Inc.’s ‘Year of Efficiency’: Navigating Cost-Cutting Amidst a Rapidly Changing Landscape


    With the pandemic upending the global economy, tech giants Amazon, Apple, Facebook, Google and Microsoft have seen collective profits rise by 55% in 2021 from an already staggering baseline.[0] With a collective $1.4 trillion in sales, the companies have become the world’s 13th largest economy, overtaking Australia.[0]

    In light of the tough macroeconomic environment, Facebook’s parent company, Meta Platforms Inc., is taking on a bloated management structure that it has realized is not terribly efficient or effective.[1] CEO Mark Zuckerberg has called this the “Year of Efficiency” and laid off 13% of its workforce, in addition to cutting its office space.[2] Higher-level managers are sharing the directive with their subordinates in the coming weeks, separate from the company’s regular performance reviews that are currently underway.[3] The process is known as “flattening”, and involves transitioning managers and directors to individual contributor jobs or leaving the company.[4]

    The move has already paid off for the company, as its share price has recovered from its worst year ever. It has seen an increase of 56% in the year so far[5] However, the uncertainty surrounding job losses is affecting the morale of the employees and Meta has been delaying finalising the budgets of various teams as it is reportedly gearing up for a fresh round of job cuts.

    Implementing hiring freezes and reducing perks are the straightforward aspects.[0] For big tech companies to become innovative again, they must spearhead a shift in culture away from protecting mini-fiefdoms and more toward getting ideas in motion and product features out the door.[6] This is an entirely new challenge for the mostly technocrat leaders of these companies.[0]

    Meta’s “Year of Efficiency” plan is a reminder of the challenge ahead for Silicon Valley’s biggest firms.[7] While cost-cutting is part of the equation, the real challenge is becoming more efficient and effective in order to remain competitive in a rapidly changing landscape.

    0. “Layoffs Alone Won’t Solve Tech’s Problems” The Washington Post, 7 Feb. 2023,

    1. “Meta Takes Aim at Bosses Who Don't Actually Do Anything” VICE, 8 Feb. 2023,

    2. “Meta to Tell Many Managers to Start Coding or Get Out — Here's What Else the ‘Flattening' Will Bring” Entrepreneur, 9 Feb. 2023,

    3. “Meta to ask many managers to become individual contributors or leave” Economic Times, 7 Feb. 2023,

    4. “Meta to Ask Many Managers to Become Individual Contributors or Leave” Bloomberg, 7 Feb. 2023,

    5. “Meta is ‘flattening’ its workforce and telling high-level managers to transition to a new role or get out as Mark Zuckerberg leans in to his ‘Year of Efficiency’” Fortune, 7 Feb. 2023,

    6. “Layoffs alone won’t solve tech’s problems” Moneycontrol, 8 Feb. 2023,

    7. “A Clear Target Emerges in Tech Layoffs: Middle Managers” Yahoo! Voices, 6 Feb. 2023,

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