The parent company of Facebook, Meta has recently announced that it is laying off a tremendous number of employees.
Meta to lay off 13% Workforce
Meta has recently announced that it has laid off 13% of its overall workforce. According to the reporters, it is a mass layoff carried out by Meta, which is the first of its kind.
This is the first mass layoff in the history of Meta that the firm has carried out given the current market circumstances.
Letter Sent by Mark Zuckerberg
Just recently, Mark Zuckerberg, the CEO of Meta sent a letter addressing all of his employees. In the letter, Mark Zuckerberg made the announcement of laying off employees.
Zuckerberg also provided an update on the hiring freeze. It was at the beginning of 2022 when the Meta CEO announced that they had put a freeze on the hiring process until the end of the year.
However, he has reiterated that the hiring freeze would continue in the year 2023. They intend to keep the hiring freeze in place until the end of the first quarter of 2023.
11,000 Employees were Laid Off
The newsroom of Meta also published the latest developments taken by the company. It was revealed that they have terminated a total of 11,000 employees as part of the layoffs.
It was on November 6 when rumors started to rotate about the company planning to lay off employees. However, many did not believe in the rumors until they materialized as confirmed by Meta.
Turns out, the inside sources were actually providing the correct information.
Mark Zuckerberg mentioned in the letter that he is sorry for what has happened. He feels extremely sorry for the people who had to lose their jobs due to the rising costs that the company had to incur.
He also mentioned that in the recent trading sessions, their share prices have steeped tremendously. He had no other choice but to deal with the situation so he takes full responsibility for that.
The CEO also talked about the macroeconomic downturn that has caused huge problems for their company. He revealed they are facing ads signal loss and increased competition.
Due to the mentioned reasons, the company’s revenue has experienced a significant drop.
Below Expectation Earnings of Meta
For the third quarter, Meta reported a loss of $3.67 billion. The company has faced the loss due to heavy investments in the Research and Development department of the metaverse.
Meta has been facing many challenges ever since it entered the metaverse sector. The company wants to introduce several new metaverses, applications, currencies, and so much more.
However, if the company continues to face heavy losses, it could end up losing tremendously. It could also cause a major downtrend in the metaverse industry.
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