News: Mark Zuckerberg, almost $47 billion richer this year, told staff to be ‘scrappier’ amid mass layoffs

Meta, the parent company of Facebook, has experienced significant fluctuations recently, including CEO Mark Zuckerberg's declaration of a "year of efficiency," layoffs, and the reduction of perks. These measures have contributed to the company's strong stock performance, increasing Zuckerberg's net worth by $46.6 billion to $92.3 billion this year, according to the Bloomberg Billionaires Index.

Despite these gains, Meta has urged its employees to adopt a "scrappier" mindset. Zuckerberg addressed the employees in a company-wide call, acknowledging that restructuring, layoffs, and changes are challenging but necessary. He emphasized that the goal is not to return to the previous state but to create a more agile and resourceful organization.

Meta has undergone two rounds of job cuts, with 11,000 employees laid off in November and another 10,000 announced in March. These actions are part of Zuckerberg's broader restructuring efforts to increase efficiency. He aims to build a stronger technology company capable of developing better products at a faster pace. Additionally, improving Meta's financial performance is crucial for funding long-term projects in a challenging economic environment.

During the pandemic, Meta experienced a hiring surge, doubling its workforce from 2020. However, this expansion led to issues of surplus employees without meaningful work assignments. Zuckerberg's announcement of a "year of efficiency" and strong first-quarter earnings buoyed investor confidence and resulted in a 23% surge in the company's stock price.

Meanwhile, Meta continues to invest in artificial intelligence and the metaverse, with ongoing developments in computer chips that enhance AI and video processing infrastructure.

The goal of being "scrappier" aligns with the mindset of resource-constrained startups that must maximize available resources. Zuckerberg intends to reduce bureaucracy and increase work efficiency, even with a reduced workforce.

This approach forces the company to find innovative ways to achieve its goals and minimizes instances of too many people involved in a project, addressing a common complaint across the organization.

During an earnings call, Zuckerberg hinted at streamlining management layers to create a leaner organization and improve day-to-day operations' efficiency.