Meta CEO* Mark Zuckerberg has officially announced that the company will lay off 11,000 employees, which is approximately 13% of their total. Mr. Zuckerberg blamed himself and his excessive optimism about the company’s growth amid the pandemic for what happened.
Post-downsizing, the company will be “leaner and more efficient,” the CEO said, helped by staff and cost savings, as well as reallocating resources to “lower-priority growth areas”: advertising, artificial intelligence, and Co-Metaverse. The clearest cuts are waiting for the personnel selection department. The new series of layoffs is unprecedented in scale since the company’s inception in 2004.
All of this led to the collapse of the company’s shares – this year they have lost more than 70% in price and Meta’s market cap* fell by $700 billion. Notably, the social media giant’s shares are up more than 4% following the announcement of the cuts. Reduced meta staff* Assistance is provided: In the US, these are 16 weeks’ salary plus 2 weeks for each year of service, six months’ health insurance, and job-search and immigration assistance. Until the first quarter of 2023, the hiring of new employees will be suspended “with a few exceptions”.
* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.