The tax law change might be the reason behind Mark Zuckerberg’s “Year of Efficiency” and mass layoffs at Meta
Beginning in 2022, a change from the 2017 Tax Cuts and Jobs Act has taken effect, affecting companies’ R&D expenses: instead of being able to deduct these costs (salaries, materials, rent) immediately, they now need to be spread out over a period of five years (or 15 years if incurred abroad). This shift is expected to result in larger initial tax bills, as reported by ABGI.