Meta, the social network company, has announced that it will cut 11,000 jobs, letting go of 13% of the employees in its workforce amidst a “cultural shift” in the company. Mark Zuckerberg, CEO of the company, explained this decision was made due to a need to become more “capital efficient,” and described the next steps the company will take moving forward.
Meta Fires: 13% of Workforce
Mark Zuckerberg, Meta’s CEO, has announced today that Meta will lay off 13% of its employees and let go more than 11,000 people in the following days. The decision comes after a determination to take the company in a “leaner and more efficient” direction, as the CEO explained in a blog post detailing the measure.
Zuckerberg said the company had believed the growth fueled by the coronavirus pandemic would be permanent, and that’s why it ramped up its investments. Zuckerberg said that it was regrettable and pointed out the fact that the revenue drop has also been caused by the changing macroeconomic environment and the increase in competition. Zuckerberg stated:
I made this mistake and take full responsibility.
‘Cultural Shift’ Announced, Metaverse Commitment Reinforced
As part of the measures taken to increase the efficiency of the company, Zuckerberg stated that the layoffs are part of a “cultural shift” that will affect how the company operates. Meta will, as an example share its desktops between employees who are part-time and maintain the hiring freeze through Q1 2023. In the days ahead, more cost-cutting strategies will be introduced.
Zuckerberg indicated that certain teams would be more affected than others. Reality Labs is also one of those affected. However, Zuckerberg remarked that his “long-term vision for the metaverse” will continue to be considered one of the “high-priority growth areas” for the company. These layoffs will result in a number of benefits for the employees, including career services and support for immigration-related visa-related employees.
The market reacted in a positive way to the announcement, with the price of Meta’s stock gaining almost 5% in the premarket, at the time of writing. Meta’s stock price has been pummeled this year, going from $331 in January to $96 this week, in part thanks to the lukewarm reaction that investors have had regarding the pivot the company is making to the metaverse and to the losses that the Reality Labs division, responsible for metaverse developments, has registered thus far.
Meta is laying off more than 11,000 workers. What are your thoughts? Leave your thoughts in the comment section below.
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