Meta has joined the ranks of technology companies such as Snap and Twitter in implementing mass layoffs. Mark Zuckerberg, the company’s founder and CEO, said that laying off more than 11,000 employees, or 13 per cent of its workforce, was a last resort.
In addition to the layoffs, the company reduced discretionary spending and extended its hiring freeze through the first quarter of 2023, saying the cuts would have a disproportionate impact on the company’s recruiting team.
The reason for the layoffs is not far-fetched, as the rise of TikTok and changes to Apple’s privacy policies are blamed for the decline of the company’s lucrative advertising business. Meanwhile, a dwindling global economy, the company’s investment in metaverse, and the lingering impact of the Russian invasion of Ukraine are all factors that have contributed to a decline in Meta’s shares and assets.
Zuckerberg admitted that he was wrong to be overly optimistic about the company’s future growth due to a pandemic wave. Zuckerberg went on to say that the company would become leaner and more efficient by cutting spending and staff and focusing more resources on a smaller number of high-growth areas such as ads, artificial intelligence, and the metaverse.
The sources for this piece include an article in BusinessInsider.