Mark Zuckerberg, CEO of Meta Platform Inc HALFshed light on the continuing trend of layoffs in the tech sector, attributing it to the shift towards more efficient operating models.
On an episode of “The Morning Brew” Friday, Zuckerberg emphasized that the initial wave of layoffs was a correction to the rapid expansion seen during the pandemic. However, he said, the trend has continued as companies recognize the benefits of leaner structures.
This shift towards efficiency has led to significant changes within companies, including Meta, which saw its shares reach an all-time high following substantial staff reductions.
Zuckerberg also mentioned reducing management levels within Meta, with the aim of creating a leaner and more effective organizational structure.
“It was really tough, we parted ways with a lot of talented people that we cared about,” Zuckerberg said of Meta’s past layoffs. “But in some ways actually becoming leaner makes the company more effective.”
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This approach has been mirrored by other tech giants, such as Microsoft Corp MSFT AND Alphabet Inc‘S Google GOOGwhich have continued to scale despite solid profits, focusing on restructuring and investing in emerging technologies such as artificial intelligence.
Zuckerberg also discussed Meta’s competition with the Apple company AAPLparticularly in virtual reality, augmented reality and spatial computing.
Despite a long-standing rivalry with Apple’s CEO Tim CookZuckerberg said he respects Apple’s work and anticipates ongoing competition in developing immersive technology platforms.
The conversation also focused on the broader landscape of the history of computing, with Zuckerberg reflecting on the results of closed versus open platforms.
He suggested that the future of the technological domain, especially in new computing paradigms, remains undecided, underlining the dynamic nature of the sector.
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This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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