Zuckerberg’s Family Foundation Restructures, Cuts Education Staff in Efficiency Drive
Mark Zuckerberg’s family foundation, the Chan Zuckerberg Initiative (CZI), has undergone a restructuring that has resulted in the reduction of its education staff. The move is part of a broader cost-cutting initiative called the Year of Efficiency, which was introduced by Meta CEO Mark Zuckerberg. The 74, an education news site funded by CZI, reported that 48 employees on the education team were laid off as a result of the restructuring.
CZI, which focuses on supporting causes in science, education, and community inclusiveness, is known for its work in advancing research on student learning and human development, developing technology to aid academic achievement, and fostering partnerships for systems change in education.
In a statement, CZI spokesperson Raymonde Charles explained that the restructuring was based on insights from grantees, research, and educators. While the organization is adapting its approach, it remains committed to empowering educators to provide every student with the necessary support for success both inside and outside the classroom.
Although the exact size of CZI’s workforce remains unknown, the organization had 450 employees in 2020. The laid-off employees were offered a severance package that includes 16 weeks of base pay, a prorated 2023 bonus, continued health insurance, and a $10,000 stipend to assist with transitional needs.
Established in 2015, CZI is one of the largest philanthropic organizations in the United States dedicated to education. It has provided grants to nearly 1,000 organizations that support teachers. Co-founders Zuckerberg and Priscilla Chan have pledged to donate 99 percent of their Facebook shares, valued at $45 billion at the time, to CZI. As of the end of 2020, the organization had $6.3 billion in assets under management.
The restructuring of CZI follows Meta’s struggles in 2022, during which it experienced a 60 percent decline in market value. This prompted Zuckerberg to initiate a comprehensive cost-reduction effort known as the Year of Efficiency. Since November 2022, Meta has eliminated 21,000 jobs across all departments.
Reflecting on this initiative, Zuckerberg stated that the Year of Efficiency has two aims: fortifying Meta as a technology company and improving its financial results to support long-term plans. As Meta’s stock price has surged by 147 percent in 2023, almost recovering last year’s losses, the company now has a market cap of nearly $800 billion.
Meta’s securities sale in 2023 warrants attention due to the scope of its cost-cutting measures and the subsequent improvement in its financial performance. As the company focuses on creating stability for employees and introducing new AI-powered tools, the remainder of the year offers opportunities for further growth and development.
In summary, the Chan Zuckerberg Initiative has restructured its education team, resulting in the layoff of 48 employees. This move is part of Meta CEO Mark Zuckerberg’s broader cost-reduction efforts, and it follows Meta’s significant layoffs. Despite the restructuring, CZI remains committed to supporting education and educators in their mission to provide students with the necessary tools for success.
