Is AI behind surge in tech layoffs? What does Mark Zuckerberg have to say...

Article: Meta CEO Mark Zuckerberg recently addressed the ongoing trend of tech layoffs, shedding light on the reasons behind this industry-wide phenomenon. In a conversation on the Morning Brew Daily's podcast, Mark Zuckerberg attributed the persistent layoffs to companies navigating the challenges posed by Covid-19 pandemic. According to him, businesses are still adapting to the post-pandemic landscape, leading to necessary yet "painful" decisions.

Mark Zuckerberg shared insights into his leadership style, noting that he doesn't believe in extensive delegation. When questioned about the surge in tech layoffs amid the AI boom, he clarified that the primary driver is the aftermath of the pandemic rather than the result of overhiring during the AI trend.

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The Meta CEO acknowledged the tough decisions his company made during the "year of efficiency," which included multiple rounds of layoffs. Despite parting ways with many talented individuals, Zuckerberg believes that the process of becoming leaner can enhance a company's effectiveness. Meta's headcount, as of the end of 2023, stood at 67,317, reflecting a 22% year-over-year decrease.

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Zuckerberg's efficiency drive extended beyond layoffs, involving the removal of several management layers. While acknowledging the challenges faced by the tech industry, Zuckerberg highlighted that the streamlining efforts contribute to a more agile and effective organisational structure.

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As of 2024, data from Layoffs.fyi, a startup tracking job cuts, indicates that approximately 32,000 tech workers have lost their jobs. This trend encompasses not only industry giants like Google, Amazon, and Microsoft but also smaller fintech firms and startups, all adjusting to the evolving dynamics of the tech landscape. 

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