New Delhi: Meta CEO Mark Zuckerberg on Wednesday confirmed it was laying off 11,000 employees globally after disappointing revenue growth. The layoffs will begin on Wednesday, November 9, 2022. Mark Zuckerberg has blog post about layoffs informing about faltering revenue. Meta had 87,314 employees as of the end of September.
“Today I’m sharing some of the most difficult changes I’ve made in the history of Meta. I’ve decided to reduce the size of my team by about 13% and let go of our more than 11,000 talented employees. We’re also taking There are several additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1,” Mark Zuckerberg said in a blog post.
Facebook parent Meta is laying off about 13% of its workforce, 11,000 people, as it grapples with faltering revenue and the broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees on Wednesday.
The company also plans to cut discretionary spending and extend its hiring freeze during the first quarter. But it did not disclose the expected cost savings from the moves.
The company said Meta will pay 16 weeks of base pay plus two additional weeks for every year of service, plus all remaining paid time off as a part of the severance package.
According to the company, the affected employees will also receive their shares which vested on November 15 and healthcare coverage for six months.
Zuckerberg is among several top US officials who have warned of a recession this year.
However, some of Meta’s wounds are self-inflicted.
A valuable bet on the Metaverse, a shared virtual world, has the company projecting up to $100 billion in spending for 2023. This has raised suspicion from investors who are losing patience with investments that Zuckerberg himself expects to bear the fruits of a decade.
The company is also grappling with stiff competition from TikTok and privacy changes from Apple Inc (AAPL.O), while being in the crosshairs of regulators around the world.
According to people familiar with the meeting, Meta’s head of human resources Lori Golar told the group that employees who lose their jobs will be provided at least four months’ pay as severance. Zuckerberg described broad cuts and specifically mentioned recruitment and business teams facing layoffs.
(with inputs from agencies)