Facebook and Meta spend a lot of money on Mark Zuckerberg’s Metaverse, and the company appears to be spending about $1 billion a month.
Now its parent company, Meta, has announced that it will cut costs by laying off about 11,000 employees. The news was announced by the company’s CEO, Mark Zuckerberg.
Today I’m sharing some of the toughest changes we’ve made in Meta history. I’ve decided to reduce our team size by about 13% and let over 11,000 of our talented employees go. We are also taking a number of additional steps to become a more agile and efficient company by reducing discretionary spending and extending our hiring freeze into the first quarter.
I want to take responsibility for these decisions and how we got here. I know this is difficult for everyone, and I am especially sorry for those affected.
At the start of Covid, the world moved quickly online and the e-commerce boom led to huge revenue growth. Many people expected this to be a permanent acceleration that would continue even after the pandemic was over. I did too, so I made the decision to significantly increase our investment. Unfortunately, this did not happen the way I expected. Not only has online commerce returned to previous trends, but the overall economic downturn, increased competition, and loss of advertising signal caused our revenue to be much lower than I had anticipated. I got this wrong, and I take responsibility for that.
Meta also announced that in addition to laying off 11,000 employees, it will maintain expenses and also extend a hiring freeze.
image rights: Solen Viess
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