More than 11,000 of Meta's employees will be let go in the company's first mass layoffs. The move was announced in a message to employees by Mark Zuckerberg. Every organization will be affected by the job cuts. The company is reducing the size of its team as well as cutting discretionary spending and extending its hiring freeze. The recruitment team will be affected by the layoffs since they are planning to hire less people.
He wants to take responsibility for how Meta ended up in this situation. He decided to increase Meta's investments after a large revenue growth in the height of the swine flu. He said that many people predicted that this would be a permanent acceleration. The return of e- commerce to pre-pandemic trends and the economic downturn resulted in revenue being lower than expected. Meta has decided to focus on its priority growth areas, including its ads and business platforms, as well as its long term vision for the metaverse.
Employees will soon receive an email about the layoffs. In the US, Meta will give affected staff members 16 weeks of their base pay plus two additional weeks for every year of service, with no cap. The healthcare costs for the employees and their families will be covered. The company promises to help them find new jobs by using an external vendor that will give them access to unpublished job listings as well as to support employees on visas with a dedicated team of immigration specialists. It will be the same for those in other countries.
The amount of sensitive information Meta has made it necessary to remove system access for those being let go. Their email addresses will remain active throughout the day so they don't have to guess who is still around. It was unclear who still worked there in the first days after the job cuts started, and people's access to their emails was cut off even before they were laid off.
The mass layoffs that reduced its workforce in half were announced in an email. If the follow up email landed on their work email, they still have a job. They were cut if it landed on their email. According to a report, some employees have been asked to come back after realizing they were laid off by mistake or that their skills are essential to the features Musk wants.
The Wall Street Journal reported that Meta's recruiting and business teams would be hit the hardest.
There has been a hint of cuts for a while. During the company's most recent earnings call, the CEO said Meta could become a slightly smaller organization by the end of 2023 New hires have been stopped and some projects have been cut.
Meta has lost billions of dollars on its investments in the metaverse. The company expects to lose a lot more in the next few years. Changes to Apple's ad tracking abilities have taken a toll on Facebook's ad revenue.
In the past few months, major tech companies have laid off workers. The company laid off about 20 percent of its workforce.
Mariella Moon made a contribution.
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