On Nov. 9, Meta Platforms Inc., the parent company of Facebook, announced that it will fire 13% of its workforce, or more than 11,000 workers.
In a blog post announcing the news, CEO Mark Zuckerberg admitted blame for being too bullish about the company’s prospects for growth in the wake of the epidemic rise.
“At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth.
I made the decision to significantly increase our investments because I believed there would be a permanent acceleration that would last even after the pandemic ended. Unfortunately, things did not turn out as I had anticipated.
By reducing spending and staff, Zuckerberg said the firm would become “leaner and more efficient” and devote more resources to “a smaller number of high priority growth areas,” including as advertising, artificial intelligence, and the metaverse.
Zuckerberg said that the company’s recruiting team would be particularly “disproportionately affected” by the cuts.
In the blog post announcing Meta’s layoffs, Zuckerberg stated that employees in the US who were let go will get 16 weeks of base pay plus two extra weeks for each year of service, six months of health insurance, and assistance with finding new jobs and resolving immigration difficulties.
Through the first quarter of 2023, the business would implement a hiring freeze, according to Zuckerberg, “with a tiny number of exceptions.”
The massive job cuts, the first in Meta’s 18-year history, come in the wake of thousands of layoffs at other top internet firms including Twitter, owned by Elon Musk, and Microsoft Corp.