[ad_1]
In one of the biggest tech layoffs of 2022, Facebook parent Meta Platforms Inc on Wednesday said that it will let go of 13% of its workforce, or more than 11,000 employees, as part of a plan to reduce costs at the social-media platform following disappointing earnings, soaring costs, and a weak advertising market.
“I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted,” Chief Executive Officer Mark Zuckerberg said in a statement.
The reductions, part of the first major budget cut since the founding of Facebook in 2004, reflect a sharp slowdown in digital advertising revenue, an economy wobbling on the brink of recession and Zuckerberg’s heavy investment in a speculative virtual-reality push called the metaverse.
Employees who are affected will be told starting today morning, and Zuckerberg spoke to executives on Tuesday to prepare them for the cuts. On the executive call, Zuckerberg said he was accountable for the company’s “missteps,” according to the Wall Street Journal.
Also Read: Meta’s mega layoff: ‘There are two reasons…’ admits Mark in 10 point defence
Broad layoffs
Meta’s job reductions, the first in the company’s 18-year history, follow cutbacks at Twitter last week, which saw that company cut roughly 50% of its workforce following its sale to Elon Musk.
Those layoffs were chaotic, with many employees finding out they had lost their jobs when they were suddenly cut off from Slack or email. Musk said the moves were necessary to stem losses at the social network. He later asked some fired workers to return.
Snap Inc, parent of rival app Snapchat, is also scaling back, saying in August that it would eliminate 20% of its workforce.
The Covid-19 pandemic boom that boosted tech firms and their valuations has turned into a bust this year in the face of decades-high inflation and rapidly rising interest rates.
Meta, whose shares have lost more than two-thirds of their value, stated that it also plans to cut discretionary spending and extend its hiring freeze through the first quarter.
Zuckerberg had warned employees in late September that Meta intended to slash expenses and restructure teams. The Menlo Park, California-based firm, which also owns Instagram and WhatsApp, implemented a hiring freeze, and the CEO said that Meta expected headcount to be smaller in 2023 than it is this year.
Download The Mint News App to get Daily Market Updates & Live Business News.
[ad_2]
Source link
John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
