Mark Zuckerberg, the CEO of Meta, has declared he will let go of 11,000 of his employees in an effort to make the company “leaner and more effective.”
The creator of Facebook disclosed that he had written to all of his employees outlining the “tough circumstances” the business is currently facing.
These difficulties would involve the elimination of 11,000 employees or roughly 13 percent of Meta’s entire workforce.
These layoffs occur after Zuckerberg spent $15 billion on his favorite virtual reality project. The Metaverse hasn’t actually accomplished much beyond drawing criticism and holding the occasional cartoon meeting with one of his employees.
A hiring freeze that would last through the new year was also announced by Zuckerberg. Making it unlikely that any of those who had lost their jobs would immediately find new jobs at the business.
The creator of Facebook expressed his willingness to “accept responsibility for these mistakes” and expressed his “particular regret” to those impacted.
Those who are let go will receive 16 weeks of severance compensation plus an additional two weeks for each year of employment with Meta.
Zuckerberg asserted that the coronavirus pandemic was one of the primary causes of why a firm the size of Meta was required to lay off 11,000 people.
While many businesses were affected by COVID-19 and were forced to make cuts as a result. Zuckerberg said the pandemic caused a “rush of e-commerce” and “outsized revenue growth” that brought in a lot of money for Meta.
The creator of Facebook
He claimed that because of the pandemic’s spike. They believed their income would be accelerating “permanently,” but that assumption was incorrect.
Having spent a lot of money while generating a lot of money during COVID. They now have to find a method to decrease costs, which means firing employees. Zuckerberg has also spent $15 billion on the Metaverse, which serves no useful purpose.
He had a net worth of nearly $125 billion before 2022 began. It has since dropped to less than half that amount, or roughly $55 billion, which is still a sizable sum.
The creator of Facebook has also left the list of the 10 richest Americans for the first time in a number of years.
A social media competitor
As part of a cost-cutting effort, Meta is not the first significant technological company to lay off people. Twitter, a social media competitor, also did this after hiring Elon Musk as its new CEO.
However, several of the individuals who were sacked from Twitter have subsequently been urged to simply forget about it and return to their previous positions because they were ostensibly fired in error.
Following dismal profits and a decline in sales, Facebook’s parent company, Meta, today announced that more than 11,000 staff would be let go in order to cut costs.
The widespread employment losses come after layoffs at other significant tech firms, such as Elon Musk-owned Twitter and Microsoft.
“I’m going to list some of the most challenging modifications we’ve ever made to Meta today. “I’ve made the decision to let more than 11,000 of our great workers go in order to reduce the size of our workforce by roughly 13%,” Mark Zuckerberg, the CEO of Meta, stated in a blog post today.
“We’re also cutting discretionary spending and extending our hiring freeze through Q1 to build a smaller and more effective organization,” Zuckerberg added.
Apology of Mark Zuckerberg
The creator of Facebook apologized to the Meta staff and accepted responsibility for his choices. “I want to accept responsibility for these choices and how we arrived here. “I’m sorry to those affected, and I know this is difficult for everyone,” he said.
According to the creator of Facebook. The increase in e-commerce and web traffic that occurred during the COVID shutdown was part of a permanent acceleration. “However, the financial downturn heightened competition. Loss of ad signal has resulted in our revenue being significantly lower than anticipated.” This is where I went wrong.
Last note
Employees would receive 16 weeks of their base salary as severance. Plus an additional two weeks for each year of service. According to the corporation, employees will be reimbursed for healthcare expenses for six months.
The layoffs would mark Facebook’s first significant budget reduction since the company’s founding in 2004. The decreases are due to a steep slowdown in digital advertising revenue. A teetering economy on the verge of a recession, and Mark Zuckerberg’s significant investment in the metaverse. A speculative virtual reality initiative.
