Ma announced layoffs of 11000 employees staff will be
Software

M**a announced layoffs of 11,000 employees – staff will be reduced by 13%

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.

    Image source: Adolfo Felix / unsplash.com

Image source: Adolfo Felix / unsplash.com

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.

Difficult situation in meta* was founded for several reasons: negative macroeconomic factors, the behavior of competitors and a special development strategy. TikTok’s strong growth and changes in Apple’s privacy policy have caused the company’s advertising revenue to drop. And the fantastic spending figures for the direction of the metaverse seem less and less justified: in 2022 alone the company lost $9.4 billion here and will spend even more in the future. At the same time, the flagship of the virtual platform Horizon Worlds is unpopular not only among users, but also among its own developers.

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”.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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