Meta is laying off over 11,000 employees

Meta is cutting its workforce by approximately 13 percent and allowing over 11,000 employees to go on its first mass layoffs. Mark Zuckerberg announceMeta shared the newsroom message with employees. Although all companies will be affected, some organizations will be more directly affected than others. The company plans to reduce its staff size and extend the hiring freeze until the first quarter 2023. The layoff will have a significant impact on the staffing team, as it plans to hire significantly less people next year.

Zuckerberg claims he wants to be accountable for how Meta got into this mess. He made the decision to increase Meta investments following a period of exceptionally high revenue growth during the pandemic. This was when users were spending more on ecommerce. He explained that many people expected this to be an ongoing acceleration that would continue long after the pandemic ended. But his gamble didn’t pay off. E-commerce returned to prepandemic trends and the economic downturn led to lower revenue than he expected. Meta has therefore chosen to concentrate on its priority growth areas, including advertising and business platforms, as well as its long-term vision for metaverse.

According to the CEO, employees will soon receive an email regarding layoffs. Meta will pay affected employees in the US a severance payment of 16 weeks of baseline and two additional weeks for every year of service. There is no cap. It will also cover the cost for health care for affected employees and their family for a period not exceeding six months. The company will help them find new jobs by providing them with access to unpublished job listing and support staff for visa issues with a dedicated team. The support will be similar to other countries, with some variations that take into consideration local labor laws.

Meta says it has already blocked access to the system to those who are being abandoned today because of the sensitive information it has. However, their email addresses are still active, so co-workers will not have to guess who has been cut and who is still around.

First, the news of the impending layoff was announced mentionedBy The Wall Street JournalThis also mentionedMeta’s staffing team and staffing agencies will be particularly hard hit.

Mark Zuckerberg has been hinting for some time at cuts. During the company’s most recent business earnings call,According to the CEO, Meta could be a “slightly smaller company” by 2023. According to reports, he also instructed managers how to identify people. to lay off workersAnd has He told the staffRealistically, there may be some people in the company who shouldn’t be. The company was already closed New appointmentsTake some projectsInside Reality Labs.

Meta was losing billions on its investments in metaverse. Reality Labs lost more than $1.5 billion. 10 billion dollarsIn 2021. According to the company’s estimates, 2021 will be to lose“Significantly” more in 2023. Apple’s new app ad tracking capabilities also caused a decline in Facebook’s advertising revenue.

Meta will be cutting a significant number jobs, but it is not the only tech company to make this happen in recent months. Snap has been discontinued 20 percentTwitter recently cut its workforce during the summer. about halfFollowing the Elon Musk acquisition, its employees are now fully engaged.

Mariella Munn contributed this post.