Facebook-owning company Meta lays off 11,000 workers

Anthony Cuthbertson wrote this article in The Independent:

Facebook parent company Meta has announced that 11,000 employees will be laid off, representing 13% of its global workforce.

“Today, I share some of the toughest changes we’ve made in Meta’s history,” Meta CEO Mark Zuckerberg announced.

“I have decided to reduce the size of our team by approximately 13% and let over 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner, more efficient business by reducing discretionary spending and extending our hiring freeze through the first quarter. »

This follows mass layoffs from other US tech giants over the past week, including Salesforce and Twitter.

Mr Zuckerberg attributed the layoffs to the “outsized revenue growth” experienced at the start of the Covid pandemic.

“Many people predicted that this would be a permanent acceleration that would continue even after the pandemic was over. I, too, have therefore made the decision to significantly increase our investments,” he wrote in a blog post. “Unfortunately, it didn’t go as I expected.”

An economic downturn and a bleak outlook for online advertising – by far Meta’s biggest source of revenue – have contributed to Meta’s woes. This summer, Meta recorded its first quarterly revenue drop in history, followed by another bigger drop in the fall.

Some of the pain is company-specific, while others relate to broader economic and technological forces. Meta has worried investors by pouring more than $10 billion a year into the Metaverse as it shifts its focus away from social media. Mr. Zuckerberg predicts that the metaverse, an immersive digital universe, will eventually replace smartphones as the primary means of using technology.

Meta and its advertisers are preparing for a possible recession. There’s also the challenge of Apple’s privacy tools, which make it harder for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them.

Competition from TikTok is also a growing threat as young people flock to the video-sharing app on Instagram, which Meta also owns.

As part of their severance package, workers in the United States will receive 16 weeks of base pay plus two additional weeks for each year of service, while those outside the United States will receive “similar” compensation.

Previous Lebanese security remains strong despite presidential vacuum, minister says
Next Is the Iranian theocracy on the chopping block?