Meta is reducing the size of its workforce by about 13 percent and letting more than 11,000 its employees go in the first mass layoffs in the company’s history. Mark Zuckerberg has announced the mass layoffs in a message to employees, which Meta shared on its Newsroom.
Mark Zuckerberg has been hinting at cuts for some time. During the company’s most recent earnings call, the CEO said Meta could become “a slightly smaller organization” by the end of 2023.He also has reportedly instructed managers to identify people for layoffs, and has told employees that “realistically, there are probably a bunch of people at the company who shouldn’t be here.” The company has already halted new hiring and cut some projects within Reality Labs.
Meta has been losing billions of dollars on its investments in the metaverse, with Reality Labs losing more than $10 billion in 2021. The company has said it expects to lose “significantly” more in 2023. Facebook’s ad revenue has also taken a significant hit due to Apple’s changes to apps’ ad tracking abilities.
Though Meta is cutting a significant number of jobs, it’s not the only major tech company to lay off workers in recent months. Snap laid off about 20 percent of its workforce over the summer, and Twitter recently cut about half of its staff following Elon Musk’s takeover.
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