December 10, 2022

Meta is laying off more than 11,000 employees

from Mark Zuckerberg Founded in 2004, Facebook has consistently hired more employees than the Silicon Valley company. At the end of September it had the largest number of workers ever, totaling 87,314.

But on Wednesday, the company – Now renamed Meta – Began to cut jobs, more deeply.

Meta said it would lay off more than 11,000 people, or about 13 percent of its workforce. The layoffs were made across departments, although some areas, such as recruiting, were hit harder than others.

“I want to take responsibility for these decisions and how we got here,” Mr. Zuckerberg wrote A letter to employees. “I know this is difficult for everyone, and I’m especially sorry for the victims.”

On Tuesday, Mr. Zuckerberg met with executives to discuss the layoffs, two people who attended the meeting said. One person present said the chief executive took responsibility for the cuts, saying his company had grown too quickly. Meta has also canceled travel plans for employees to ensure they are prepared to meet with managers if their team is affected by the layoffs, the three people said.

Formerly The Wall Street Journal reported Mr. with the administrators on Tuesday. Meet Zuckerberg.

Over the years, Meta has been a powerful company as Facebook has amassed more users and acquired companies like Instagram and WhatsApp. Not even research on it Data Privacy Practices And the toxic content in its applications may reduce its financial performance as its stock continues to climb and its revenues soar. At one point last year, Meta was valued at $1 trillion.

But the company has struggled financially this year as it tries to move into a new business — the high-speed world it calls the Metaverse — while grappling with a global economic slowdown and the collapse of digital advertising, its mainstay. revenue. Last month, Meta posted 50 percent decline in quarterly profit And its second direct sales decline. Its stock has fallen more than 72 percent this year.

Meta joins Other technology companies, Snap, etc., have laid off employees as economic conditions become more challenging. While many of these companies have flourished during the coronavirus pandemic, there are few large ones Announced financial results Recent weeks have shown that they are feeling the fallout from global economic jitters. Last week, Elon Musk, the new owner TwitterThey laid off half of the company’s 7,500 employees, saying the social media service was losing $4 million a day.

“These boom-and-bust cycles are incredibly destructive within organizations because the people who work there feel like they don’t know where they stand,” said Sandra J. Sucher said. By quickly hiring in all departments during the pandemic, Mr. He said Zuckerberg founded his company to cut staff.

Mr. Zuckerberg, 38, telegraphed that he wanted Meta Control costsstarting with cutting Many luxury perks once enjoyed by employees. In March, the company announced that it would either streamline or eliminate free services such as laundry and dry cleaning. He also cut the company’s free dinner benefits, making it difficult for employees to take home dinner for themselves and their families.

In July, Mr. Zuckerberg warned employees that the company was experiencing “”One of the worst crashes We have seen in recent history” and, in September Hiring freeze announced.

Last month, he warned that “teams will be flat or shrink over the next year.” The company will “end 2023 as roughly the same size or slightly smaller organization than it is today,” he said.

Within Meta, Mr. Two executives said Zuckerberg’s financial commitments were creating friction on Metaverse.

Meta is spending billions of dollars on metawares-related products, such as virtual-reality headsets, but even if such products are important, there’s no guarantee people will seek them out. At the cost of the social network’s core business, Mr. People expressed concern that Meta had spent too much to realize Zuckerberg’s ambitions.

In its earnings report last month, Meta revealed that Reality Labs, part of the company that works on Metaverse, had an operating loss of $3.67 billion. Reality Labs experienced its lowest revenue since the final quarter of 2020. The company expects Reality Labs’ operating losses to widen next year.

This is a developing message. Check back for updates.

Ryan Mack And Adam Satariano Contributed report.