The workforce will be reduced by 13%, according to a statement by Meta, the company that owns Facebook, Instagram, and WhatsApp.
Of 87,000 employees worldwide, 11,000 will lose their employment due to the company’s first significant layoffs.
According to Mark Zuckerberg, chief executive of Meta, the adjustments were “the most challenging changes we’ve ever done.”
The statement came after significant layoffs at tech companies like Twitter, which reduced its workforce by roughly half.
What does the owner say?
He told the press, “I know this is difficult for everyone, and I’m extremely sorry to those impacted.”
Massive long-term growth expectations based on the company’s revenue increase during the pandemic, according to Mr. Zuckerberg, were to blame.
He added, “I, too, believed that this would be a permanent acceleration. Therefore I decided to expand our investments dramatically.”
Instead, he said that the “macroeconomic slump” and “increasing competitiveness” were to blame for far lower revenue than anticipated.
He admitted that I made a mistake here, and I accept responsibility for that.
It was widely anticipated that job losses would be announced.
According to Mr. Zuckerberg, the business would concentrate on high-growth sectors, including advertising, artificial intelligence, and “our long-term ambition for the metaverse.”
Additionally, Meta will reduce expenditure on office space and structures while promoting desk sharing.
He stated that affected Meta employees would shortly receive an email and have the chance to ask questions.
Redundancy payments for US workers will equal 16 weeks’ pay plus one week for each year of service. Additionally, family health insurance will still be available for another six months.
Similar support will be provided outside of the US. However, there will be a different redundancy procedure to accommodate regional employment regulations.