This is the first round of redundancies in the company’s history. It comes after the workforce peaked at 87.314.
After a devastating collapse in revenue, Mark Zuckerberg’s Meta has been forced to cut 11,000 jobs. This is more than one-in-eight staff.
After the company’s workforce reached its peak of 87,314 employees in 2018, it announces its first round of redundancies. Zuckerberg stated in the note that Covid had been overinvested before it was launched and that this led to the belief that online activity would continue to grow even after the pandemic.
He said, “Unfortunately this didn’t work out as I expected.” “Online commerce has returned to previous trends, but the macroeconomic downturn and increased competition have resulted in our revenue is much lower than I expected. This is my fault and I accept responsibility.
These job losses are the first in Meta’s 18-year history. They come after thousands of layoffs at Microsoft, Twitter, and Microsoft since it was purchased by Elon Musk, the world’s wealthiest man. With sky-high inflation and rising interest rates, the tech boom turned into a bust in this year’s cost of living crisis.
Zuckerberg sent a mea culpa message of support to his employees
Online commerce has not only returned to previous trends but also the macroeconomic downturn, increased competition, and loss of ads signal have resulted in a much lower revenue than I expected.
This is my error, and I am responsible.
He stated that the company would shift its resources to areas of “high priority growth” like its AI discovery engine and ads, as well as its business platforms and metaverse project.
Meta stated that it would pay 16 weeks’ base salary and two additional weeks for each year of service in its severance package. It will also pay all unpaid time off. The cost of healthcare will be covered for six months by employees, and the 15 November vesting will be given to those who are affected.
The company will reduce discretionary spending and increase its hiring freeze for the first quarter of next year.
Pre-market trading saw Facebook shares rise by 3%
