Meta Reverses Work-From-Home Policy After Slashing Thousands in Layoffs Rounds
Key takeaways
- Meta announces hybrid staff need to be in the office three days a week from September
- The move comes after rounding off its huge 21,000-strong layoffs rounds
- Other big players like Amazon and Disney have enforced similar policies
Big Tech behemoth Meta is the latest to go back on its original stance around working from home, with Meta employees now expected to come into the office three days a week. It’s a big play after Meta has just finished up its enormous 21,000-strong layoffs to fulfill the company’s ‘year of efficiency’ — and workers might not like the change of plans. We’ve got the details below.
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What’s the latest with Meta’s workforce?
Meta, previously a champion of home working, has made it official: it’s time to get back on the Meta campus. The new policy, which comes into effect at the start of September, is required for hybrid employees with an assigned office only. No fully remote workers will be asked to return to the office.
It’s not entirely unexpected: back in March, CEO Mark Zuckerberg said in a blog post that the evidence showed people worked better in the office than at home. A Meta spokesperson said, “We’re committed to distributed work, and we’re confident people can make a meaningful impact both from the office and at home”.
It’s a ballsy move, given that Zuckerberg allegedly had his leadership questioned by employees in recent Meta town halls after laying off a whopping 21,000 employees in two giant layoffs rounds, the first the company’s ever had to undertake since it was founded.
But it’s not alone: Amazon announced it would bring workers back to offices three days a week, with the policy beginning in May, while Disney is now asking for employees to be in four days a week.
Wall Street’s reaction
Meta’s stock price has risen 3.44% in the last five days to hit $274, buoyed by the new VR headset the company announced as part of its expansion into the metaverse.
Meta is up 120% since the start of 2023, boosted by the AI craze that’s swept the world since the dawn of ChatGPT last year, but the stock is still down around 30% from its all-time high. The share price surge was also partly a response to Zuck’s “year of efficiency,” which had Wall Street bumping up the stock each time a new layoff round was announced.
The bottom line
Meta can do no wrong, it seems. The shares go up every time the company announces a new round of job cuts or now a back-to-work policy. But now Meta has to deliver on its promises, and traders will look for evidence that the efficiencies add up — which may be an issue if Meta employees aren’t too happy with the new policies.
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