Meta declares layoffs affecting 11,000 workers.
As if things couldn’t get worse in 2022. While the IT sector is dealing with its own set of issues, the cryptocurrency markets are already in a state of shock. Meta also disclosed that it will follow Twitter’s lead and implement similar measures. It has now been revealed that the choice will have an impact on 11,000 Meta employees, or around 13% of the workforce. CEO Mark Zuckerberg made the news on his company blog.
One of the largest IT businesses in the world is called Meta. However, the business hasn’t been able to turn a profit, much like the wider financial situation. The corporation is making the layoffs in an effort to “become leaner and more efficient.”
Zuckerberg expressed his regret to the impacted parties, saying,
“I want to accept responsibility for these choices and how we arrived here. I apologize in particular to those who are impacted since I realize this is difficult for everyone.
The issues started, in Zuckerberg’s opinion, with COVID. Zuckerberg “substantially increased” investments as a result of the rise in e-commerce and internet resources. The assumption underlying this choice was that the increase would persist beyond the outbreak.
He clarified, though,
Unfortunately, things did not go as I had anticipated.
According to Zuckerberg, Meta will concentrate more on a few key growth sectors, such as advertising, artificial intelligence, and the metaverse.
The company would also “offer three months of career support with an external vendor, including early access to unpublished employment leads” for the laid-off workers in addition to “16 weeks of base salary plus two additional weeks for every year of service, with no maximum.”
What has led Meta to tumble so drastically?
Despite the broad decline in tech equities, Meta has been particularly heavily hit. The emergence of competing services like TikTok has significantly impeded it.
Meta has spent $9.4 billion on its metaverse technology as of 2022, and it expects to invest a lot more in the future. The company’s primary metaverse social network, Horizon Worlds, hasn’t exactly garnered much notice either. We’ll have to wait and watch how the business performs going forward.
At the time of publication, Meta stock was down 0.26%, trading at $96.47.