A huge round of layoffs has been confirmed by Meta.
Mark Zuckerberg wrote in a statement that he wanted to take accountability for how the company got to where it is today. I'm sorry to those who have been impacted.
As companies across the technological spectrum have announced huge swathes of layoffs in recent weeks, the news comes as a result. The company said it had laid off hundreds of workers.
Meta's round of layoffs was expected, but we now know the full extent of the company's plans, and what this will mean for those impacted
Around 11,000 people will be leaving Meta worldwide. Each employee will get 16 weeks of severance pay, plus two extra weeks for each year of service, according to Facebook founder and CEO Mark Zuckerberg. A person who has worked at Meta for four years will be paid six months.
All unused time off, stock-based compensation, and health insurance for employees and their families will be paid by Meta, as well.
Meta's path to where it is today is a familiar one shared by many other companies over the past year, but the tech titan's effects are amplified by its sheer size. After becoming one of the few companies to hit a trillion dollar market cap, the company sought a new direction in the form of the metaverse.
Meta has thrown a lot of money at a project that is nowhere near ready for prime time, with critics arguing that it was losing focus of its core business in pursuit of something that is.
Meta's market cap has plummeted over the past year to around $250 billion, a figure the company last experienced in 2015 when it was on a major ascendency. The company posted its first quarterly decline in June of this year and later confirmed it was freezing its hiring plans as part of broader cost-cutting measures.
Factors have contributed to Meta's decline. Apple's App Tracking transparency framework has hit Meta's advertising revenue as the company predicted, with Apple's own ads business benefiting as a result The rise of newcomers such as TikTok has affected where advertisers spend their money.
The Great Reset is a phenomenon where companies that went too deep off the back of a surge in revenues were brought back down to earth with a shock. This is the place where Meta went wrong, compounded by the economic downturn.
The world rapidly moved online at the start of Covid, leading to outsized revenue growth. Many people predicted that this would continue after the Pandemic. I decided to increase our investment. The way this played out was not what I was expecting. The macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be lower than I had anticipated. I took responsibility for getting this wrong.
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