Meta Platforms CEO Mark Zuckerberg is increasing spending on his own security to $14 million, despite a pledge to make 2023 a “year of efficiency.”
The decision comes just after 11.000 jobs, or 13 percent of the workforce, were eliminated late last year and future spending plans for projects were cut at the social media company.
Zuckerberg told investors in February that Meta, the parent company of Facebook and Instagram, would reduce spending and increase efficiency, after a year of disappointing results last year.
Zuckerberg Spends the Most on Protection Than Other CEOs in Big Tech
The CEO of Meta has faced scrutiny in the past for spending more on personal security than his peers in the big tech industry. The official security allowance also does not include additional expenses that the company may spend on Zuckerberg’s behalf.The 38-year-old co-founder of Facebook is the sixteenth richest person on the Forbes Billionaires List and his alleged net worth is estimated to be around $64 billion.
Meta to Cut Middle Managers and Streamline Operations to Boost Productivity
Meanwhile, Zuckerberg unveiled the “Year of Efficiency” plan at a quarterly earnings call on Feb. 1, in response to declining revenue from advertising, the failed launch of the metaverse, and increasing concern from investors.“We’re working on flattening our organizational structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers be more productive,” Zuckerberg said on the earnings call.
“There’s going to be some more that we can do to improve our productivity, speed, and cost structure.”
Meta plans to “flatten” its organizational structure as part of its efficiency plan by slashing the number of middle managers and using tools such as AI to increase productivity, said Zuckerberg.
The Verge reported that Zuckerberg told company managers at a meeting that “I don’t think you want a management structure that’s just managers managing managers, managing managers, managing managers, managing the people who are doing the work.”
Meta further announced it was shuttering the “Live Shopping” feature on Instagram in another cost-cutting move.
The Financial Times also reported that the social media giant had delayed finalizing the budgets for several teams in preparation for the additional layoffs.