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Facebook parent company Meta fires 11,000 employees

Facebook parent company Meta fires 11,000 employees

This is touted to be the biggest layoff in the U.S this year.

Meta fires 11,000 employees Meta fires 11,000 employees

Meta Inc has said that it will let go of 13% of its workforce, or more than
11,000 employees, Reuters reported on Wednesday.

Mark Zuckerberg, Chief executive said, "Today I'm sharing some of the most difficult changes we've made in Meta's history. I've decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1."

This is touted to be the biggest layoff in the U.S this year.

Zuckerberg also said, "I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I'm especially sorry to those impacted."

The company is taking steps towards cutting costs after recording a rise in overall costs of the company by a fifth in the past quarter. 

Mark Zuckerberg informed employees on Tuesday about the job cuts, as per the Wall Street Journal.

As of September, Meta employed over 87,000 people around the world.

The sacking comes a couple of weeks after one of Meta's largest shareholders, Altimeter Capital wrote to Zuckerberg highlighting the need to cut costs of the company.  

Brad Gerstner of Altimeter Capital in an open letter said, "Meta has drifted into the land of excess — too many people, too many ideas, too little urgency. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes."
 

The shareholder had suggested that the social media company will have to cut jobs and reduce capital expenditure to stay on track.

This was followed by Meta's weak third quarter performance, where the company saw a rise in overall costs by a fifth. It also gave a weak guidance for the holiday quarter. 

This comes at a time when the big tech is struggling with the ongoing economic slowdown. Other companies like Amazon, Google, Microsoft have also announced a freeze in hiring. Whereas, Twitter too saw massive layoff last week owing to change in its ownership. 

Published on: Nov 09, 2022, 4:55 PM IST
Posted by: Rachna Manojkumar Dhanrajani, Nov 09, 2022, 4:47 PM IST