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Facebook parent Meta cuts over 11,000 jobs


Meta Platforms Inc. said Wednesday it is slashing its workforce by 13 percent, laying off over 11,000 of its workers.
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File photo: Mark Zuckerberg of Meta

Meta lets go of 11,000 employees

According to a report by Reuters, Facebook’s parent company decided to lay off more than 11,000 of its employees as it continues to face soaring costs from its push into the metaverse amid a weak advertising market.

Meta's mass layoffs, the first in its 18-year history and one of this years biggest follow those also done at other major tech companies like Twitter and Microsoft Corp.

We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1, Meta Chief Executive Officer Mark Zuckerberg also said in a message to employees.

This occurred as the shift to online platforms and the surge of e-commerce, which was driven by the COVID-19 pandemic, was not sustained post the said period.

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, Zuckerberg explained.

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, he further said.

With this new environment, Zuckerberg said the company needs to be more capital efficient which is why they decided to shift more resources onto a smaller number of high-priority growth areas, like AI discovery engine, ads and business platforms, and long-term vision for the metaverse.

Meta has cut costs across the business, including scaling back budgets, reducing perks, and shrinking its real estate footprint, as well as restructured teams to increase 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, the Meta executive said.

Zuckerberg said emails will be soon sent to employees to inform them what the layoff means for them. After this, affected employees will have the opportunity to speak with someone to get their questions answered.

The official also listed down some of the compensations for affected employees in the United States.
Screenshot from Meta’s website
Screenshot from Meta’s website

For those outside the US, the same support will be given as the company will continuously follow up the processes that take into account local employment laws.

Meta now expects 2023 expenses of as much as USD 100 billion, as it shifts the focus of its resources to the high-priority growth areas.

The tech firm had 87,314 employees as of the end of September.

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Sources: Reuters, Meta
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