Meta to lay off 11,000 employees, as Zuckerberg says he is ‘accountable for missteps’

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New York
CNN Business

Facebook parent company Meta said on Wednesday it will lay off 11,000 workers, marking the most significant job cuts in the tech giant’s history.

The job loss comes as Meta faces a series of challenges to its core business and makes an uncertain and expensive gamble to turn to the metaverse. It also comes amid a spate of layoffs at other tech companies in recent months as the high-flying sector reacts to high inflation, rising interest rates and fears of an impending recession.

“Today, I’m sharing some of the toughest changes we’ve made in Meta’s history,” CEO Mark Zuckerberg wrote in a blog post to employees. “I’ve decided to reduce the size of our team by about 13% and let go of more than 11,000 of our talented employees.”

The job losses will affect many corners of the company, but Meta’s recruiting team will be hit particularly hard as “we plan to hire fewer people next year,” Zuckerberg said in the post. He added that a hiring freeze would be extended until the first quarter, with a few exceptions.

In September, Meta had a workforce of more than 87,000, according to a September SEC filing.

Meta’s core ad sales business has been hit by privacy changes made by Apple, advertisers tightening their budgets, and increased competition from newer rivals like TikTok. Meanwhile, Meta has spent billions to build a future version of the Internet called the Metaverse, which is likely years away from widespread adoption.

Last month, the company posted its second-quarter sales decline and said profits had halved from the previous year. Once valued at over $1 trillion last year, Meta’s market value has since fallen to about $250 billion.

“I want to take responsibility for these decisions and for how we got here,” Zuckerberg wrote in his post on Wednesday. “I know this is hard for everyone, and I’m especially sorry for those affected.”

Meta isn’t alone in feeling the pain of a market downturn. The tech sector has faced a staggering reality check as inflation, rising interest rates and more macroeconomic headwinds have led to a stunning shift in spending for an industry that has only become more dominant as consumers extend their lives during the pandemic. moved online.

“At the onset of Covid, the world was rapidly going online and the wave of e-commerce led to excessive revenue growth,” Zuckerberg wrote on Wednesday. “Many people predicted that this would be a permanent acceleration that would continue even after the pandemic was over. So did I, so I made the decision to significantly increase our investments. Unfortunately, this did not go as I expected.”

“I misunderstood this and I take responsibility for that,” he added.

Meta’s workforce in September was nearly double the 48,268 employees it had at the start of the pandemic in March 2020.

A handful of tech companies have announced a hiring freeze or job losses in recent months, often following rapid growth during the pandemic. Last week, rideshare company Lyft said it was laying off 13% of its employees, and payment processing company Stripe said it was cutting 14% of its staff. That same day, e-commerce giant Amazon said it was taking a break from hiring companies.

Also last week, Facebook rival Twitter announced massive layoffs that impacted roles in the company as new owner, Elon Musk, took over.

In addition to the layoffs, Zuckerberg said the company “expects more cost-cutting changes” in the coming months. Known like other tech giants for its huge, extra-filled offices, Meta is rethinking its real estate needs, he said, “turning to desk sharing for people who already spend most of their time outside the office.”

“Overall,” he said, “this will lead to a meaningful cultural shift in how we work.”

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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