Meta CEO Mark Zuckerberg Announces 11,000 Job Cuts

meta executive director mark zuckerberg announced that the company has decided to reduce the size of its team by approximately 13%, eliminating more than 11,000 jobs.

“I want to take responsibility for these decisions and how we got here,” Zuckerberg said in a blog post as he announced the company’s first major job cuts since its founding in 2004.

“At the start of COVID-19, the world moved rapidly online and the rise of e-commerce led to outsized revenue growth. Many people predicted that this would be a permanent acceleration that would continue even after the pandemic was over. I did too, so I made the decision to significantly increase our investments. Unfortunately, this didn’t turn out the way I expected,” he admitted.

“Not only has online trading returned to previous trends, but the macroeconomic downturn, increased competition and loss of advertising signs have caused our revenue to be much lower than I expected. I was wrong and I take the responsibility for it.” he further added.

mark zuckerberg

Facebook CEO Mark Zuckerberg

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Last month, Meta reported a more than 50% drop in profit and a second straight quarterly drop in revenue, hurt by weak ad demand, increased competition from rivals like TikTok and privacy changes. Apple iOS.

Shares of the social media giant have tanked in 2022. Its shares have already lost two-thirds of their value so far this year.

Zuckerberg said the company also plans to take a number of additional steps to become more agile and efficient by reducing discretionary spending and extending its hiring freeze through the first quarter, with a small number of exceptions.

As the social media giant seeks to become more capital efficient, it has shifted more of its resources to a smaller number of high-priority growth areas, such as its AI discovery engine, ads and platforms. commercials, and a long-term vision for the metaverse. pointed out the head of the Meta.

Facebook, which renamed itself Meta last October, is focused on bringing the metaverse, an immersive digital realm, to life, and is making significant investments in this area. The company has lost around $9.4 billion on its metaverse technology so far this year.

While Meta is making reductions in both the app family and Reality Labs, some teams will be affected more than others, Zuckerberg said, adding that affected employees will have the opportunity to speak with someone to get their questions answered. In the US, the company will pay 16 weeks of base pay plus an additional two weeks for each year of service, with no cap, to affected employees.

In addition, it will cover the cost of health care for individuals and their families for six months and provide three months of professional support with an outside provider, including early access to unpublished job opportunities, according to the Meta chief.

“We will share more about how we will operate as an optimized organization to achieve our priorities in the coming weeks,” Zuckerberg said.