As a ‘last resort’ option, Meta CEO Mark Zuckerberg has announced that his company will be slashing 11,000 employees from its workforce. That’s 13% of the company.
- In a blog post shared with employees on Wednesday, Zuckerberg said Meta was taking steps to become “leaner” and more efficient, but regrets that he now must lay off employees.
- Zuckerberg explained that the company had been shifting resources into “high priority growth areas,” including the metaverse, while cutting costs in other areas. However, he acknowledged that these measures wouldn’t be enough to bring the company’s expenses “in line with revenue growth.”
- “I view layoffs as a last resort, so we decided to rein in other sources of cost before letting teammates go,” he said. “Overall, this will add up to a meaningful cultural shift in how we operate.”
- The CEO said all employees would receive an email detailing how the mass layoff would impact them, including severance and health insurance information. The Recruiting department will be “disproportionately affected.”
- Meta’s stock is down 69% since last year, bleeding alongside other tech companies since the Federal Reserve began tightening monetary policy this year.
- Crypto companies have been forced to enact proportionally larger layoffs this year, such as Coinbase and OpenSea.
- Fellow social media giant Twitter is also eliminating a vast portion of its workforce after Elon Musk took over the company’s leadership.
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