Facebook and Meta have been spending a lot of money on Mark Zuckerberg’s Metaverse, which the company apparently spends around $1 billion a month.
Now its parent company Meta has announced it will cut costs by laying off about 11,000 employees. The news was announced by company CEO Mark Zuckerberg.
Today I’m going to share some of the most difficult changes we’ve made in the history of Meta. I decided to shrink our team by around 13% and let more than 11,000 talented employees go. We also took some additional steps to become a leaner, more efficient company by cutting discretionary spending and extending our hiring freeze into the first quarter.
I want to take responsibility for those decisions and how we got here. I know this is going to be tough for everyone and I’m especially sorry to those affected.
At the onset of Covid, the world went online rapidly, and the surge in e-commerce led to a huge increase in revenue. Many are predicting a permanent acceleration even after the pandemic is over. I did the same, so I decided to significantly increase our investment. Unfortunately this didn’t work as I expected. Not only has online commerce resumed its previous trend, but the macroeconomic downturn, increased competition, and loss of advertising signals caused our revenue to be well below my expectations. I was wrong and I am responsible for it.
Meta also announced that in addition to laying off 11,000 employees, it will rein in spending and extend the hiring freeze.
Image Source: Soren in the Philippines
Filed Under: Tech News, Top Stories
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