Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
Mark Zuckerberg, CEO of Meta Platforms Inc (NASDAQ: META), shed light on the ongoing trend of layoffs within the tech industry, attributing it to a shift towards more efficient operational models.
In an episode of "The Morning Brew" on Friday, Zuckerberg highlighted that the initial wave of layoffs was a correction to the rapid expansion seen during the pandemic. Still, the trend has continued as companies recognize the benefits of leaner structures, he said.
This shift towards efficiency has led to significant changes within companies, including Meta, which has seen its stock reach an all-time high following substantial staff reductions.
Zuckerberg also touched on reducing management layers within Meta, aiming to create a more streamlined and effective organizational structure.
"It was really tough, we parted with a lot of talented people we cared about," Zuckerberg said about Meta's past layoffs. "But in some ways actually becoming leaner kind of makes the company more effective."
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This approach has been mirrored by other tech giants, such as Microsoft Corp (NASDAQ: MSFT) and Alphabet Inc's Google (NASDAQ: GOOG), which have continued to downsize despite solid earnings, focusing on restructuring and investing in emerging technologies like AI.
Zuckerberg also discussed Meta's competition with Apple Inc (NASDAQ: AAPL), particularly in virtual reality, augmented reality and spatial computing.
Despite a longstanding rivalry with Apple CEO Tim Cook, Zuckerberg said he respects Apple's work and anticipated ongoing competition in developing immersive tech platforms.
The conversation also focused on the broader landscape of computing history, with Zuckerberg reflecting on the outcomes of closed versus open platforms.
He suggested that the future of tech dominance, especially in new computing paradigms, remains undecided, emphasizing the industry's dynamic nature.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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