Meta is laying off more than 11,000 workers, representing 13% of its staff, CEO Mark Zuckerberg told employees on Wednesday.
The mass layoffs in Metathe first in the company’s 18-year history, comes just a week after thousands of job cuts at Twitter under its new owner, billionaire Elon Musk, and at other tech companies hiring during the COVID pandemic. -19.
Meta, like other tech and social media companies, enjoyed a financial boost during the pandemic shutdowns as more people stayed home, focusing on their phones and computers.
However, as the lockdowns ended and people began to head back out into the daily grind, revenue growth began to falter.
What did Zuckerberg say about the mass layoffs at Meta?
“Today I am sharing some of the most difficult changes we have made in the history of Meta,” he said. Zuckerberg in a letter to company staff.
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Zuckerberg said that he, too, had anticipated rapid growth even after the pandemic was over. “Unfortunately, this did not go as expected.”
“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 responsibility for it.”
This action represents the largest cut in the history of the technological giant, Meta, which is currently the parent company of Facebook, Messenger, Instagram, WhatsApp and others, in addition to the Metaverse virtual world project.
The cause of the mass layoffs in Meta: the great challenge of the Metaverse
Downsizing comes as the big company faces different challenges to its core business, making an uncertain and very expensive bet to pivot to the Metaverse. It’s also tied to a string of layoffs at other tech companies in recent months.
The technology sector is experiencing high inflation, in addition to the company that owns Facebook and WhatsApp, presented a sharp drop in profits reported during the month of October, when Meta shares plummeted 20% in the third quarter of the year 2022.
As if that were not enough, another predominant factor for the reduction of personnel in the company is the unstoppable rising interest rates and the fear that exists about the imminent macroeconomic recession.
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Mark Zuckerberg fires more than 11,000 employees from Meta, the parent company of Facebook and WhatsApp