Lesser-known facts about Meta's (formerly Facebook) recent employee layoffs

Mumbai, 24 March 2023

Meta (formerly facebook) recently laid off more than 11,000 employees in Nov 2022, which represents around 10% of its workforce, and a second round of 10,000 layoffs was declared on March 14, 2023. The layoffs reportedly affected multiple teams, including software engineering, content, and research.

The company cited a need to streamline its operations and focus on its core products as the reason for the layoffs. This was one of the largest layoffs in the tech industry in recent years. Meta CEO Mark Zuckerberg has said that the company is shifting its focus towards the metaverse, a virtual reality space that combines gaming, social networking, and e-commerce. The layoffs may be part of this strategic shift. 

Some analysts believe that the company's shift towards the metaverse could result in more layoffs in the future. They argue that as the company pivots towards a new business model, some roles may become redundant, while others may require new skillsets that existing employees may not have. This could lead to further restructuring and layoffs in the coming years.

There has been speculation that Meta's recent layoffs could be related to the loss of revenue due to Apple's changes to ad-tracking, which have made it more difficult for companies like Meta to target ads to users. However, it's important to note that Meta has not officially commented on the reasons behind the layoffs, so any speculation is just that - speculation.

A report from Lotame, a data solutions company headquartered in New York, highlighted the potential revenue impact on Meta from this change could be as much as US $12.8 billion in 2021 (Approximately 96,000 crore Indian Rupees) . Lotame highlighted the potential impact of Apple's App Tracking Transparency feature on the digital advertising industry, including Meta. 

A report from Lotame, a data solutions company headquartered in New York, highlighted the potential revenue impact on Meta from this change could be as much as US $12.8 billion in 2021 (Approximately 96,000 Core Indian Rupees) 

Apple's ad-tracking policy known as Apple Tracking Transparency (ATT), which was introduced in iOS 14 on April 26, 2021, has had a significant impact on social media giants like Facebook. The policy requires app developers to explicitly request permission from users to track their activity across other apps and websites for advertising purposes. This opt-in approach makes it more difficult for advertisers to target ads to specific users and track their behavior.

Since Facebook relies heavily on advertising revenue, this policy has affected the company's ability to deliver targeted ads to its users. Facebook's advertising business model relies on collecting data about user behavior to create detailed user profiles that can be used to target ads to specific individuals. With Apple's ad-tracking policy, Facebook is no longer able to access certain types of user data, which can make it more challenging to deliver effective targeted ads. 

In response to the policy, Facebook has introduced a series of changes to its advertising platform, including the introduction of new targeting options and the optimization of ad delivery algorithms. The company has also launched a campaign to encourage users to opt-in to ad tracking, arguing that personalized ads can be more relevant and useful to users.

Another lesser-known report is that the layoffs could also be linked to Meta's ongoing legal battles. The company is facing antitrust lawsuits from the US government and other countries, and the legal challenges could be putting pressure on the company to cut costs and streamline its operations.

Overall, Apple's ad-tracking policy has had a significant impact on the advertising industry, particularly for companies like Facebook that rely heavily on targeted advertising. However, it remains to be seen how this policy will continue to play out in the long term and whether it will lead to significant changes in the way advertisers approach digital advertising.