Meta, which owns Facebook, Instagram and WhatsApp, has introduced that it’s going toreduce 13% of its workforce.
The first mass layoff in the company’s history will put 11,000 of its 87,000 employees out of work worldwide.
Meta boss Mark Zuckerberg said the cut was “the most difficult change in Meta’s history.”
The news follows massive layoffs at Twitter and other tech companies that have cut about half of their workforce.
“I know this is hard for everyone, and I am especially sorry for those affected,” he wrote in a statement.
Zuckerberg blamed long-term, massive growth expectations for the company’s surge in sales during the pandemic. “Many people predicted that this would be a permanent acceleration, and I did too, so we decided to significantly increase our investment.”
Instead, he said “macroeconomic weakness” and “increasing competition” meant earnings were far below expectations.
“I got it wrong and I take responsibility for it,” he said.
The announcement of job cuts was widely expected.
Zuckerberg briefed hundreds of Meta executives on Tuesday about the plan, according to The Wall Street Journal.
Zuckerberg said the company will focus on high-priority growth areas such as artificial intelligence, advertising and a “long-term vision for the metaverse.”
Meta also cuts costs elsewhere, such as spending less on buildings and offices, and sharing more desks.
Affected Meta staff will soon receive an email and an opportunity to ask questions, he said.
A U.S. employee receives severance pay equal to her 16 weeks’ wages plus 1 week for each year of service. Other benefits include continuation of family health insurance for 6 months.
The job cuts plan follows problems across the tech industry as the industry grapples with slowing global economic growth.
Silicon Valley companies Stripe and Lyft recently announced major layoffs, and Amazon announced a hiring freeze at its headquarters.
Most of Meta’s $27.7bn (£24.3bn) revenue comes from advertising, but many companies are cutting their ad budgets in a tough economy.
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