Facebook-owner Meta to cut 13% of its workforce




The sign outside Meta HQ
The sign outside Meta HQ  

Meta, which owns Facebook, Instagram and WhatsApp, has announced that it will cut 13% of its workforce.

The first mass lay-offs in the firm's history will result in 11,000 employees, from a worldwide headcount of 87,000, losing their jobs.

Meta chief executive Mark Zuckerberg said the cuts were "the most difficult changes we've made in Meta's history".

The news follows major lay-offs at Twitter, which cut about half its staff, and other tech firms.

"I know this is tough for everyone, and I'm especially sorry to those impacted," he wrote in a statement.

Mr Zuckerberg blamed massive long-term expectations for growth based on the firm's rise in revenue during the pandemic.

"Many people predicted this would be a permanent acceleration," he wrote, "I did too, so I made the decision to significantly increase our investments."

Instead he said "macroeconomic downturn" and "increased competition" caused revenue to be much lower than expected

"I got this wrong, and I take responsibility for that," he said.

The announcement of job cuts was widely expected.

Mr Zuckerberg told hundreds of Meta executives of the plans on Tuesday, the Wall Street Journal reported.

Priorities

Mr Zuckerberg said the company would focus on high-priority growth areas, like artificial intelligence, advertising, and "our long-term vision for the metaverse".

Meta will also cut costs elsewhere - including reducing its spending on buildings and offices, and increasing desk-sharing.

Affected Meta employees will receive an email soon, he said, and will have an opportunity to ask questions.

US employees will receive redundancy payments worth 16 weeks pay plus a week for every year worked. Additional benefits will also include continuing to provide family health insurance for six months.

Support outside the US will be similar, but there will be a separate redundancy process to take into account local employment laws.

COMMENTS

More Related News

Meta Evokes Big Tech
Meta Evokes Big Tech's Glory Days With Biggest Surge Since 2013

(Bloomberg) -- A spectacular turnaround in Meta Platforms Inc.'s stock is bringing back flashes of Big Tech heydays.Most Read from BloombergMerck Covid Drug ...

Meta Shares Soar Most Since 2013 on Zuckerberg
Meta Shares Soar Most Since 2013 on Zuckerberg's Vision

(Bloomberg) -- Meta Platforms Inc. is headed for its biggest single-day gain in almost a decade after Chief Executive Officer Mark Zuckerberg laid out plans ...

Meta Shares Soar as Zuckerberg Declares
Meta Shares Soar as Zuckerberg Declares 'Year of Efficiency'

(Bloomberg) -- Meta Platforms Inc.'s shares soared more than 20%, on track for their biggest gain in 10 years, after Chief Executive Officer Mark Zuckerberg ...

Meta reports sales fall, but beats expectations
Meta reports sales fall, but beats expectations

Facebook and Instagram owner Meta on Wednesday reported its first annual sales drop since the company went public in 2012, but the fall was less brutal than ...

Meta earnings drop by less than expected with boost from Reels
Meta earnings drop by less than expected with boost from Reels

Parent company of Facebook and Instagram reports $32bn in revenue for fourth quarter, prompting rise in stock price

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy