Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company's headquarters in Menlo Park, California, U.S. September 25, 2024. REUTERS/Manuel Orbegozo

Meta CEO attributes layoffs plan to capex, won't rule out further job cuts

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NEW YORK, April 30 : Meta's Chief Executive Mark Zuckerberg attributed the company's plan for layoffs to increased capital expenditures and declined to rule out further cuts, in comments delivered to employees at an internal company town hall on Thursday.

“We basically have two major cost centers in the company: compute infrastructure and people-oriented things," Zuckerberg said in the session, details of which were shared with Reuters. "If we’re investing more in one area to serve our community, then that means ... we do need to take down the size of the company somewhat.”

The session marked the first time Zuckerberg has addressed employees directly about the layoffs since Reuters first reported the plan in March.

Meta intends to lay off about 10 per cent of its workforce on May 20, with additional cuts planned for the second half of the year.

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Zuckerberg and other executives have confirmed the May layoffs but declined to speak to any plans beyond that.

"I wish that I can tell you that I have a crystal ball plan for the next, like, three years of how all this stuff is going to play out. I don't. I don't think anyone does," he said.

Source: Reuters

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