For the first time since the creation of Facebook, currently converted into Meta, Marco Zuckerberg made the drastic decision to significantly downsize his company with the dismissal of a total of 11 thousand employeeswhich corresponds to about 13% of its workforce.
After the decision made by Zuckerberg it was announced that the employees laid off will receive 16 weeks of base salary and two additional weeks of salary for each year of service. Additionally, the company will cover your health insurance for six months.
It also promised to help non-US employees with their paperwork work visas. Meta did not immediately specify the geographical distribution of the job cuts.
As part of this contraction, assume within the group they are also frozen until the end of March 2023.
The desire for a “more agile” company: what lies behind Meta’s layoffs
Wednesday, November 9, the dismissal of employees, for a total of 11 thousand, which corresponds about 13% of the troops in Metathe parent company of the social media giant.
“Today I share some of the hardest changes we’ve ever made di Meta (…) I have decided to reduce the size of our team by around 13% and to part with 11,000 of our talented employees, ”Zuckerberg, the group’s chief executive, announced in a message addressed to employees.
“I want to take responsibility for these decisions and how we got here. I know it’s hard for everyone and I’m sorry, especially for those affected, “Zuckerberg said.
The creator of Facebook has announced that it will also take a series of further steps to become a “more agile and efficient” company through discretionary spending cuts and an extension of the hiring freeze policy until 2023.
As of September 30, Meta had approx 87 thousand employees worldwide on its various platforms, which also include the social networks Facebook and Instagram and WhatsApp instant messaging.
Recently, the social network published disappointing quarterly resultswith a decline in turnover and profits, as well as a stagnation in the number of users.
This balance has accelerated the decline in the company’s stock, which has lost more than 70% in total since the beginning of the year on the Nasdaq. This Wednesday, Wall Street reacted favorably to the announcement of the layoffs and Meta closed with a gain of 5.16%.
More mass layoffs in the tech sector
The measure adopted by Meta is part of a broader context of massive employment cuts in the sector, especially in the face of decline in advertising revenuethe cornerstone of most tech companies.
At the end of August, Hurriedthe parent company of the Snapchat app, it has cut about 20% of its workforce, more than 1,200 employees.
Last week, two Silicon Valley companies, Band (digital payments) e lyft (car reservations with driver), massive layoffs reported.
Amazonin the meantime, he has blocked hiring in his offices.
Another shocker in the industry was Elon Musk, who lost roughly half of his 7,500 employees in his early days as Twitter CEO.
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Source: Clarin
