2 hours ago
- copy link
Meta, the parent company of Facebook, Instagram and WhatsApp, today (Tuesday, March 14) has announced the removal of more than 10,000 employees. The company has announced retrenchment under the second round. Earlier in November-2022, the company had trimmed the first round.
In the first round, Meta laid off 11,000 employees, which was 13% of the entire workforce. For the first time in the company’s 18-year history, such a large number of employees were retrenched. The announcement to remove the employees was made by the company’s CEO Mark Zuckerberg. He attributed this to the decline in revenue due to wrong decisions.
5 thousand posts will be kept vacant
Zuckerberg has said that this decision is very difficult, but necessary. After closing 10,000 jobs, the company will keep 5,000 posts vacant. Zuckerberg wrote in a message to the staff that the company suffered a setback in 2022 when it came to know that its revenue had fallen significantly.
Zuckerberg said, “Increased interest rates in the US, volatility in the world and increase in regulatory law are responsible for the decline in the company’s earnings.” Zuckerberg said in the message, ‘I think we should be ready to deal with the new economic situation because this phase is going to be a bit long.’
It will be known on Wednesday whose job is lost and whose is left.
Zuckerberg said, ‘He will first tell the company’s recruitment team whose job has gone and whose job is left. Zuckerberg has said that this thing will be clear by Wednesday. “It is expected that the re-structuring and retrenchment will begin in technical groups in April and the process of impacting business groups will begin in May,” he added.
Local leaders will give information to international teams
In a message to employees, Zuckerberg wrote, “In some cases, we will complete the entire process by the end of the year.” The timeline will be slightly different for international teams. The local leader will share information about it.”
How did the company reach this position?
Mark had said, ‘At the beginning of Kovid, the world rapidly went online and the increase in e-commerce increased the revenue. Many predicted that this increase would be permanent, which would continue even after the end of the pandemic. I thought the same, so I decided to increase my investment. Unfortunately, it didn’t live up to my expectation.
Not only has online commerce returned to earlier trends, but the macroeconomic downturn, competition, and less advertising have resulted in revenue being lower than I expected. I made this mistake and I take responsibility for it. In this new environment, we need to become more capital efficient. We have shifted resources to high priority growth areas.
AI discovery engine, advertising and business platform and our long term vision for the metaverse. We have cut the cost of business, including reducing budget, reducing perks and reducing real estate footprint. We are restructuring teams to increase our efficiency. But these measures alone will not bring our expenses in line with our revenue growth, so I have also taken the difficult decision of letting people go.
There were 87,314 employees in Meta
Meta had 87,314 employees by the end of September 2022. Meta currently owns some of the largest social media platforms in the world including WhatsApp, Instagram and Facebook. However, the company is increasing its spending on the metaverse.
The Metaverse is a virtual world where users can create their own avatars. The company has been incurring losses due to low law adoption rate and costly R&D. The layoffs are expected to ease the financial crisis of the company to some extent.
