The downward trend in Big Tech persists, with Meta's layoffs impacting 11,000 employees.
In Brief
Meta is reducing its workforce by 13%, laying off 11,000 employees in total.
Employees who are being let go from Meta will be offered a severance package.
In a historic decision, Meta is laying off 11,000 team members, which makes up 13% of its workforce. This marks a notable moment in the company's history. CEO Mark Zuckerberg announced the decision in a letter to employees.
After expanding to over 85,000 employees, Meta, previously known as Facebook, is now trimming its workforce, with specific departments such as business and recruitment facing deeper cuts.
For its U.S. employees, Meta will provide a severance offer totaling 16 weeks of pay based on their base salary, with an additional two weeks for each year spent at the company. A health care plan will also be available to each departing employee and their families for six months.
Meta is not alone in this trend, as several other major tech companies are also implementing significant layoffs. Following Elon Musk's takeover of Twitter, nearly half of its workforce, about 3,700 employees, was also let go.
This year has proven challenging for many sectors due to economic instability, rising global inflation, and concerns about a potential recession. Companies of all sizes are compelled to adapt and cut costs in preparation for unforeseen circumstances.
"I understand how difficult this is for everyone, and I truly regret the impact on those affected. Unfortunately, this situation did not unfold as I had anticipated. I misjudged it, and I take full responsibility,\"
Zuckerberg extended his apologies to the 11,000 employees facing layoffs.
At one time, Facebook boasted a valuation of $1 trillion. However, since Zuckerberg rebranded the company to Meta a year ago with an emphasis on building the metaverse, its worth has decreased to around $270 billion. Over $11 billion has been poured into the development of this virtual realm, which many feel is still nowhere near its intended potential.
In October, Meta reported The third quarter saw a staggering 50% dip in profits, with the stock currently trading at $103, marking a 70% decrease from the previous year. Meta’s overall capital expenditures (expenses and costs) for 2022 exceed $22 billion, with nearly half of that allocated to the metaverse alone.
Recently, Meta shareholder Brad Gerstner expressed criticism regarding the company’s current business strategy. He contends that the expenditures on the metaverse have been excessive; investors and shareholders appear to have lost faith in the organization. Gerstner recommended that Meta limit its annual spending to no more than $5 billion, focusing on clearer targets and metrics for success. wrote an open letter Moving forward, Meta is set to adopt a new operational strategy. The company has implemented a hiring freeze until March 2023, prioritizing the metaverse, artificial intelligence, and advertising as its primary focus areas.
Is the popular fitness app STEPN reducing its workforce? The company has denied any rumors of layoffs.
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Disclaimer
In line with the Trust Project guidelines Agne is a journalist who specializes in covering emerging trends and advancements in the metaverse, AI, and Web3 sectors for the Metaverse Post. Her dedication to storytelling drives her to conduct numerous interviews with industry experts, always aiming to discover fascinating and engaging narratives. With a Bachelor’s degree in literature, Agne boasts an extensive writing background on a diverse array of subjects, including travel, art, and culture. Additionally, she has volunteered her skills as an editor for an animal rights organization, advocating for greater awareness around welfare issues. Feel free to reach out to her at
