Facebook Owner Meta will Fire 11,000 Workers as the Tech Sector Continues to Suffer

Meta Platforms Inc., the corporation that owns Facebook and Instagram, has announced significant layoffs that would affect roughly 11,000 employees worldwide, or nearly 13% of its total staff

On Wednesday morning, CEO Mark Zuckerberg sent an email to the workers informing them of the choice.

In a post, Zuckerberg said, “Today I’m disclosing some of the most challenging adjustments we’ve ever made at Meta.
We are also taking several additional initiatives to become a leaner and more effective organization by lowering discretionary spending and extending our hiring freeze through Q1 in addition to my decision to let more than 11,000 of our great people go.

The Facebook CEO stated that he wanted to “take the blame” for the change before going on to justify the reductions by pointing to a misinterpretation of COVID-related digital trends, macroeconomic worries, and Apple’s decision to stop sharing user data with outside parties.

“At the beginning of COVID, the globe quickly went online, and the explosion of e-commerce caused an astronomical increase in revenue. Many individuals believed that this acceleration would last forever and carry on long after the pandemic was over. I decided to dramatically boost our investments because I felt the same way,” Zuckerberg stated. “Unfortunately, things did not go as I had anticipated. Along with the financial slump, greater competition, and ad signal loss, internet commerce has also resumed its previous trends. But despite my expectations, our revenue has been substantially lower than I’d anticipated due to the macroeconomic slump, greater competition, and ad signal loss. I acknowledge that I made a mistake in this.”

To operate more effectively, the company is freezing hiring and reducing its employee base, according to Zuckerberg. This is done by concentrating investment on a small number of core areas and cutting costs in other areas, such as its real estate footprint, benefits, and, yes, employee base.

The business stated that its 2002 expense outlook of $85-87 billion remained constant and that the costs related to the restructuring had decreased in a securities filing on Wednesday. The company continues, it is added “currently anticipates that our overall expenses will fall within the following range: of $94–100 billion, down from the previous range of $96–101 billion.

According to the filing, “we are considerably decreasing our hiring trajectory through the beginning of 2023, and the new range reflects our strategy to add fewer people in 2023 than we previously planned.”

Hollywoodreporter