The news: Meta is rehiring some of the scores of workers it laid off since last year, and it will be paying them less.
Year of inefficiency: Meta’s deep workforce cuts were part of CEO Mark Zuckerberg’s vision for a “year of efficiency.” However, rehiring laid-off workers increases rather than decreases costs for companies.
The rehirings point to a tendency to repeat past mistakes. During the pandemic, Meta hired too many workers for it to sustain, resulting in significant cuts. Rehiring laid-off employees indicates that Meta may have missed the balance and gone too far in the other direction.
Mixed outcomes: Meta’s workforce roller coaster has taken a toll on morale. At the same time, the rehirings show that Meta is on stronger financial footing.
The tech giant’s ability to bring former employees back into the fold while paying them less also shows Big Tech’s upper hand despite an appetite for tech workers among other industries.
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