Facebook’s parent company, Meta, stated today that it would layoffs around 11,000 employees in an effort to cut expenses following disappointing profitability and revenue declines. The mass layoffs come on the heels of cutbacks at other prominent technology companies, including Elon Musk’s Twitter and Microsoft.
“Today I’m going to talk about some of the most difficult changes we’ve ever done at Meta. I’ve chosen to trim our team size by around 13% and let go of over 11,000 of our great employees “, in a blog post today, Meta’s CEO, Mark Zuckerberg, stated.
We are also taking a number of additional initiatives to become a leaner and more efficient firm, including decreasing discretionary spending and extending our hiring freeze through Q1, Zuckerberg explained.
Mark Zuckerberg apologized to Meta employees, accepting responsibility for his actions. I’d like to accept responsibility for these judgments and how we got here. I understand how difficult this is for everyone, and my heartfelt condolences go out to everyone, he stated
Employees would get 16 weeks of base salary plus two additional weeks for each year of service as severance pay. According to the corporation, employees will receive healthcare coverage for six months.
The cuts, which are part of the first substantial budget decrease since Facebook’s foundation in 2004, reflect a sharp slowdown in digital advertising revenue, an economy on the verge of recession, and Mark Zuckerberg’s heavy investment in a speculative virtual-reality push known as the metaverse.
Zuckerberg emphasized the need for the company to become more capital efficient, stating that resources would be shifted to “high priority growth areas” such as its AI discovery engine, advertisements and commercial platforms, and metaverse project.
Layoffs by other companies
Meta’s layoffs come on the heels of Twitter’s layoffs last week, which saw the firm layoffs almost half of its workers following its sale to Elon Musk. Musk claimed the modifications were necessary to prevent social media losses. He later invited fired employees back.
Snap, the parent company of competitor program Snapchat, is also cutting back, announcing in August that it would layoffs 20% of its employees. Earlier, Philips also announced to layoffs more than 4000 employees.
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