Meta (formerly Facebook) CEO Mark Zuckerberg has acknowledged that the company will undertake mass layoffs. In a mail sent to hundreds of executives, the company's CEO claimed responsibility for the problem of an inflated workforce. Zuckerberg claimed the problem originated from his "over-optimism" about the growth of the company. Reportedly, Musk will start the mass layoffs on Wednesday.
The mass layoffs at Meta will result in thousands of people losing their jobs. According to a report by Wall Street Journal, Zuckerberg took responsibility for the company's missteps. This will be Meta's biggest round of layoffs, according to the report, and most likely the biggest in the tech sector this year. It will be the biggest reduction in the workforce for Meta since it was founded in 2018.
The report suggests that most of the layoffs will be in the recruiting and business teams. The company is expected to make an internal announcement at 6 am ET (4:30 pm IST), officially starting the process. Later, as the morning progresses, specific employees will be informed about their termination status.
Meta will join the list of tech companies resorting to mass layoffs, in view of weak financial outlook. Recently, Twitter fired around half its employees from offices across the globe. The company's India office fired around 90 per cent of the total employees. Unlike Zuckerberg, Musk had taken over his company just days before conducting the mass layoffs. He claimed he had 'no choice' as the company was losing around $4 million a day.
Zuckerberg has been defending the company's bullish stance in metaverse tech, which has been a loss-making endeavor, so far. In a recent filing, the company reported a weak outlook for the holiday quarter and also claimed slow growth for 2023. The company announced that it would incur significant losses in Metaverse investments next year. Meta had 87,314 employees at the end of September 2022. Even a small percentage of reduction in workforce will lead to a significant number of employees losing their jobs.
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