Mark Zuckerberg released a message, revealing that more than 11,000 “talented employees” will be released, or 13% of the total workforce. The Facebook founder said he takes responsibility and is “particularly sorry” about the impact. He also pointed to misjudgments in investments, the weakness of the advertising market and the macroeconomic downturn as some of the reasons for the mass layoff.
The executive revealed that predictions about how the online world will move forward after COVID didn’t play out as planned and the company faced increased competition, a loss of advertising, which led to a decrease in revenue. Meta “must become more capital efficient” and will shift resources to fewer high-priority growth areas such as the AI discovery engine as well as the long-term vision for the metaverse.
The company will also cut budgets, reduce benefits, and reduce the real estate footprint, which means employees will have to share desks in the future. All these measures are not enough to maintain revenue growth, which is why Zuckerberg has decided to free 13% of the total workforce.
Employees laid off in the United States will receive severance pay, remaining PTO paid, health insurance for the next six months, and assisted professional support through a third-party provider. Support will be similar outside the United States, the letter reads, taking into account local labor laws.
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