Reports expressed that the cutbacks influenced the Meta India group across verticals, although the specific number of impacted workers couldn’t be determined.
The layoffs come just a week after Twitter’s new owner, billionaire Elon Musk, laid off a large number of employees. Several job cuts have occurred at other tech firms that hired quickly during the pandemic.
- A global economic downturn, rising interest rates, and regulatory challenges have prompted tech companies such as Alphabet and Amazon to reduce or eliminate hiring. Snap laid off 1,300 employees and reduced investments in late August.
- Microsoft laid off around 1,000 employees across several divisions in October.
- CEO Mark Zuckerberg said that the company froze hiring till Q1 of next year.
- Twitter also fired roughly 3500 employees recently.
Zuckerberg said in a prepared statement. “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”
Zuckerberg also stated that he made the decision to hire aggressively, anticipating rapid growth even after the pandemic was over.
Meta’s current headcount equates to around 87,000 around the world, meaning that 11,000 people will be leaving Meta. According to Zuckerberg, each U.S.-based employee will receive 16 weeks of severance pay, plus two extra weeks for each year of service. So for example, someone who has worked at Meta for four years will effectively get six months’ pay.
Meta said that workers will also be paid for all remaining unused time off and receive stock-based compensation that was vesting through November 15. Additionally, health insurance for employees and their families will be offered for six months.
Subsequent to becoming one of a handful of the organizations ever to hit a trillion-dollar market cap — solidly in the center of the pandemic — the organization looked for another heading as the metaverse, rebranding from Facebook to Meta simultaneously.
Under Zuckerberg’s stewardship — will be heading in a different direction any time soon. He said redundancies will influence representatives at “Group of Applications” (for example Facebook, Instagram, and WhatsApp) as well as Reality Labs, the VR and AR unit pushing its metaverse mission, however, it’s not satisfactory what divisions will be hit most: “a few groups will be impacted more than others,” Zuckerberg expressed.
Aside from the layoffs, Meta also stated that it is assessing its infrastructure investment to improve capacity efficiency. Additionally, it is trying to “reduce its real estate footprint,” which will entail increasing desk-sharing for employees who only seldom visit an office. Additionally, it will continue to restrict employment through early 2023, with just a “limited number of exceptions.”
“I’m going to watch our business performance, operational efficiency, and other macroeconomic factors to determine whether and how much we should resume hiring at that point,” Zuckerberg wrote.
As its major platform Facebook loses young users and has financial difficulties as a result of changes in Apple’s privacy policies, Meta has encountered worry about the company’s future. Investors, though, don’t seem to be convinced by the company’s metaverse shift.
Last month, Meta posted a 50 percent slide in quarterly profits and its second straight sales decline, even as its spending soared by 19 percent. Its stock has dropped roughly 70 percent this year.
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