Key Takeaways:
- The company fired more than 11000 employees on November 9, 2022, according to a message posted by Meta CEO Mark Zuckerberg, cutting the company’s workforce by about 13%.
- Zuckerberg emphasised the need for the company to increase capital efficiency and stated that resources would be shifted to “high priority growth areas.”
Having followed discouraging profits and a decline in revenue, Facebook’s parent company Meta today announced that it would let go of more than 11,000 employees to cut costs.
“I’m going to list some of the most challenging modifications we’ve ever made to Meta today. I’ve made the decision to let more than 11,000 of our talented workers go in order to reduce the size of our team by roughly 13%.”
With the FTC filing a lawsuit against Meta to now the subsequent firing of employees, this year has been especially difficult for Meta.
This is Meta’s first significant cycle cutbacks, and it’s widely regarded as the most severe one since Facebook launched in 2004. It reflects a dramatic decrease in the digital advertising market brought on by the recession.
Meta works to increase its capital efficiency. They have focused more of their efforts on a relatively small selection of high primary concern growth sectors, such as the metaverse’s long-term vision, ads and business platforms, and AI discovery engines.
The next step was to reduce expenses across the board, including budgets, perks, and the size of the real estate portfolio.
The company also disclosed that for each year of service, it would pay out 16 weeks of base pay plus an additional two weeks of pay. Additionally, Meta will offer former employees six months of health insurance, assistance with immigration, and career services.
It is noteworthy that Meta employs approximately 87,000 people worldwide, of whom approximately 11,000 will be let go by the company in what will presumably be the largest layoffs in company history.
According to Zuckerberg’s statement, business teams are also being reorganized while workforce cutbacks will impact the entire company. Factions like recruiting will be adversely affected. Employees who are being let go no longer have access.
Additionally, Mark Zuckerberg disclosed the Severance Package, which will consist of 16 weeks of base pay plus an additional two weeks for each year of service with no maximum. The restricted stock unit vesting and all unused PTO will be paid to the employees on November 15, 2022.
The community’s response to Meta’s job cuts has been conflicted; some believe the consequences will be cataclysmic, while others express appreciation for the support given to the laid-off staff.
