As if 2022 couldn’t get any worse. The crypto markets are already in a state of shock, while the tech industry is going through its own set of problems. After Twitter’s massive employee layoffs, Meta also revealed that it would take similar steps. Now it has come to light that the decision will affect 11,000 Meta employees, accounting for around 13% of its workforce. The announcement was made via an official blog by CEO Mark Zuckerberg.
Meta is one of the biggest tech companies in the world. However, like the general financial scenario, the company has not been able to rake in profits. The layoffs are an attempt by the company to become “leaner and more efficient.”
Zuckerberg apologized to the people who have been affected, stating that,
“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.”
According to Zuckerberg, the troubles began with COVID. A surge in e-commerce and online tools led Zuckerberg to “significantly increase” investments. This decision was riding on the belief that the surge would continue after the pandemic.
However, he stated,
“Unfortunately, this did not play out the way I expected.”
Zuckerberg stated that Meta would focus more on a handful of high-priority growth areas, which include Ads, AI, and the metaverse.
The employees who will be laid off will receive “16 weeks of base pay plus two additional weeks for every year of service, with no cap.” The firm will also “provide three months of career support with an external vendor, including early access to unpublished job leads.”
What has caused Meta to fall this hard?
Although tech stocks, in general, have been dwindling, Meta in particular has been hit hard. the rise of rival platforms, such as TikTok, has severely affected its growth.
As of 2022, Meta has lost $9.4 billion on its metaverse technology, and it anticipates spending significantly more in the future. Horizon Worlds, the company’s flagship metaverse social platform, hasn’t exactly drawn attention either. How the company fares from here on remains to be seen.
At press time, Meta stock was trading at $96.47, down by 0.26%.