It’s official: maxi layoffs for Meta
Meta CEO Mark Zuckerberg announced that his company will cut 13% of its staff, more than 11,000 employees, in an attempt to withstand the macroeconomic scenario
It thundered so much that it rained in Menlo Park: the cold shower of layoffs for 11 thousand employees of Meta, the company that owns Facebook, Meta arrives without surprise.
The tech giant thus cut 13% of its workforce of 87,000 employees. This was announced by founder and CEO Mark Zuckerberg in a letter to his employees , explaining that he is facing a decline in revenue and the difficulties faced by the entire digital technology industry. The US billionaire had decided to hire "aggressively", predicting a period of rapid growth after the end of the pandemic.
After the firing of half of Twitter's employees last Friday , now it's up to another Big Tech to send thousands of people home.
This is the first operation of its kind in the history of the company and, although in proportion to a smaller size than the maxi layoff that took place within Twitter, it could be the highest number of people kicked from a Big Tech in a year that has seen a contraction. of the sector. Last September the company had declared that it had and the media already hypothesized a 10% cut in expenses also through layoffs.
All the details.
THE SECTORS OF GOAL AFFECTED BY THE DISMISSALS
The cuts will occur "in every organization in both Family of Apps and Reality Labs," he said. And "some teams will be hit more than others".
MR ZUCKERBERG'S MEA CULPA
“Unfortunately – wrote Zuckerberg – things did not go as I expected. Not only has online commerce returned to previous trends, but macroeconomic decline, increased competition and losses in the advertising industry have reduced our revenue more than I expected. "
But the founder and CEO of Facebook publicly mea culpa: "I made a mistake and I take responsibility" puts pen to paper Zuckerberg.
RENOVATION REQUIRED
After more than a decade of explosive growth, Meta's momentum is starting to slow and she is forced to resort to the largest round of layoffs in its history. The restructuring demonstrates the financial pressure facing the tech giant that is trying to get its business running.
“In this new environment, we need to become more capital efficient,” added Meta's CEO. "We've shifted more of our assets to fewer high-priority growth areas, such as our AI discovery engine, our advertising and business platforms, and our long-term vision for the metaverse."
The global economic slowdown is hitting its ad revenue, with brands curbing marketing spend on their platforms. Meta shares fell 25% last week after disclosing that net profit fell more than 50% in the third quarter . In late October, the company reported its second consecutive quarter of year-over-year revenue decline.
THE COMMENT OF THE EXPERTS
"Meta is in the midst of an identity crisis," Mike Proulx of technology research firm Forrester told Ft . “The company has one foot in a risky long-term metaverse bet and another foot fails to compete with TikTok. Neither bodes well for short-term Meta and stricter cost-cutting measures were inevitable as the company attempted to reorganize to head towards bleak 2023 ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/e-ufficiale-maxi-licenziamenti-per-meta/ on Wed, 09 Nov 2022 15:08:53 +0000.