Last year, Facebook reduced over 700 jobs in the UK, costing £79m, as part of parent company Meta’s first-ever global cost-cutting initiative due to a significant drop in revenue, resulting in a decrease in employees.
As one of the top US tech companies, Facebook lowered its UK tax bill to around 12% of pre-tax profits, aligning it with the standard corporate tax rate, half of the previous rate of 25%.
Mark Zuckerberg acknowledged Meta’s overinvestment during the early stages of the pandemic, resulting in 11,000 job cuts after expecting sustained online activity post-pandemic, a decision he took responsibility for in a staff memo.
Last year, Facebook UK saw 10% of its workforce let go, decreasing the employee count from 7,053 to 6,338 by the end of 2023, primarily affecting sales support, administration, and marketing roles.
Additionally, Facebook paid £149m to exit a central London office lease last year, part of its facility consolidation strategy, with UK revenue slightly declining from 2022 to 2023.
Despite challenges, Facebook UK managed to increase pre-tax profits, albeit with criticism over its reduced tax bill. Meta’s financial recovery this year has been notable, exceeding market expectations and doubling its market value.
Furthermore, Meta is focusing on AI investment, aiming for MetaAI to become the most used AI assistant globally, with continuous efforts to expand its user base on social media platforms.
Source: www.theguardian.com
