Mark Zuckerberg at FCS 2019

Meta to layoff more than 11 000 employees

Mark Zuckerberg, CEO of Meta, the parent company of Facebook, has announced that the brand is laying off more than 11 000 employees in a letter to employees.

“I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go,” said Zuckerberg.

Meta joins other social tech companies including the likes of Twitter, Amazon, Lyft, and Intel to either freeze hiring or lay off staff.

“At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected. Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.

In this new environment, we need to become more capital efficient. We’ve shifted more of our resources onto a smaller number of high priority growth areas — like our AI discovery engine, our ads and business platforms, and our long-term vision for the metaverse. We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint. We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go,” said Zuckerberg.

Adding to Meta’s woes is the company’s $700 Billion drop in valuation as a result of uncertainty around the metaverse, rising costs and expenditure, and declining sales and operating income.

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