As a “last resort” option, Meta CEO Mark Zuckerberg announced that his company would pull 11,000 employees from its workforce. This represents 13% of the company.
- in Blog Posts Zuckerberg, who shared it with employees on Wednesday, said Meta is taking steps to become “more lean” and more efficient, but lamented that he now has to lay off employees.
- Zuckerberg explained that the company has shifted its resources to “high priority growth areas,” including the metaverse, while cutting costs in other areas. But he acknowledged that these measures would not be enough to bring the company’s spending “in line with revenue growth”.
- “I see layoffs as a last resort, so we decided to rein in other sources of cost before letting his teammates go,” he said. “Overall, this will add a meaningful cultural change to the way we work.”
- The CEO said all employees will receive an email detailing how the mass layoff will affect them, including information about severance pay and health insurance. The recruitment department will be affected “disproportionately”.
- Meta stock is down 69% since last year, with other tech companies bleeding out since the Federal Reserve began tightening monetary policy this year.
- Crypto companies have had to lay off workers relatively more this year, such as Coinbase and open sea.
- The other social media giant Twitter is too eliminate a significant portion of its workforce after Elon Musk took over the leadership of the company.
The Twitter post isn’t the only one: Meta (Facebook) Sacks 11,000 employees debuted on CryptoPotato.