Meta officially announces the layoffs of 11 thousand of its employees
  • November 9, 2022
  • Mohmed Abdelaziz
  • 0

Meta CEO Mark Zuckerberg announced today, Wednesday, in a letter he sent to the company’s employees, a mass layoff campaign, in confirmation of reports published during the past days.

Zuckerberg said Meta would lay off more than a tenth of its employees. “Today I am sharing with you some of the most difficult changes we have made in the history of Meta,” he wrote in his message.

He added, “I have decided to reduce the size of our team by about 13 percent, and lay off more than 11,000 of our talented employees. We also took a number of additional steps; Let’s become a smaller, more efficient company by cutting discretionary spending, and extending our hiring freeze until the first quarter.”

After Zuckerberg’s announcement, Meta’s share price rose by 4 percent in pre-market trading.

The layoff comes amid a difficult time for Meta, which is affiliated with Facebook, Instagram, WhatsApp, and others, which provided weak forecasts in late October for the profits of the current fourth quarter, which frightened investors, and caused its shares to fall by about 20%.

Over the past period, investors have been concerned about rising Meta costs and expenses, which jumped 19 percent year-over-year in the third quarter to $22.1 billion. Meta’s total sales fell 4 percent year-on-year to $27.71 billion in the third quarter, while its operating income fell 46 percent from a year earlier to $5.66 billion.

Zuckerberg also said in his letter: “I want to take responsibility for these decisions, and for what got us to where we are now. I know this is difficult for everyone, and I am especially sorry for those affected.”

Zuckerberg said Meta is making cuts at each of its organizations, but hiring will be disproportionately affected between organizations, and the company plans to hire fewer people in 2023. Zuckerberg said the company has extended the hiring freeze until the first quarter, with a few exceptions.

Zuckerberg added: “This is a sad moment, and there is no way around it. And to those who are leaving, I want to thank you once again for all you have given this place.”

Zuckerberg explained that affected employees will receive 16 weeks of pay, in addition to an additional two weeks for each year of service. Meta will cover health insurance for six months.

Meta is investing heavily in metaverses, a virtual world that has not yet matured and can be accessed through virtual and augmented reality glasses. This massive bet has cost Meta more than $9.4 billion so far in 2022, and the company expects losses to grow exponentially year on year.

It is worth noting that the total number of Meta employees is estimated at more than 87,000 employees as of last September.

Mohmed Abdelaziz

A journalist and reviewer with extensive experience in programming and social media, he has a strong CV in the field of technology. You can contact him via e-mail: [email protected]

https://tcitnews.com

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