Meta Platforms Inc said on Wednesday it would lay off 11,000 jobs, or 13 per cent of its workforce, as the Facebook parent battles challenges.
“The teammates who will be leaving us are talented and passionate, and have made an important impact on our company and community. Each of you have helped make Meta a success, and I’m grateful for it. I’m sure you’ll go on to do great work at other places,” said Mark Zuckerberg, Meta’s chief executive officer in a blogpost.
“At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected.
“Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that,” he said.
Meta will extend its hiring freeze through Q1 of 2023, with some exceptions.
“I’m going to watch our business performance, operational efficiency, and other macroeconomic factors to determine whether and how much we should resume hiring at that point,” said Zuckberg.
The lay-offs would affect every team across the company.
“I believe we are deeply underestimated as a company today. Billions of people use our services to connect, and our communities keep growing. Our core business is among the most profitable ever built with huge potential ahead,” Zuckerberg said.
The employees fired will get 16 weeks of base pay plus two additional weeks for every year of service, with no cap. The company will also provide three months of career support with an external vendor, including early access to unpublished job leads to all those who have been laid off, Zuckerberg said.
Big tech giants including Apple, Meta, Twitter, Amazon and others have been facing the heat of the ongoing economic slowdown. According to Crunchbase, a market research company, technology US-based companies have fired over 45,000 workers of October 2022.
The people leaving the company will lose the access to most Meta systems by the end of the day, given the sensitivity of the data accessed by them. However, their email addresses will remain active throughout the day so everyone can say farewell.
The announcement came days after Twitter, another social media giant reduced its global workforce to half.