Meta’s CEO, Mark Zuckerberg, announced on Wednesday that he is laying off 13% of his employees in order to cut costs.
Takeaway Points
- Meta Ceo, on Wednesday, told his staff he is laying off 13% of the workforce, or more than 11,000 employees.
- The layoff was made to save costs and cut spending.
- Mark said the decision was a tough one and the most difficult change ever made in Meta’s history.
- The CEO explained how it started and what gave rise to the layoffs.
Why is Meta laying off employees?
According to Meta CEO, Mark Zuckerberg, this is a tough decision to make and the “most difficult change” ever made in Meta. He said that he is laying off employees to save costs and become more efficient.
“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.” He said.
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How it all started
It all started during the COVID-19 pandemic when the world moved quickly online, and after the pandemic, he decided to increase his investments. Mark moved with the trend, he focused on a long-term vision for the metaverse, an AI discovery engine, ads, and business platforms, but it didn’t turn out the way he expected; there was more competition and loss.
“I want to take accountability for these decisions and how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.” Mark said.
Package for Laying Off
The CEO gave details of what he will do for the laid-off employees. According to him, he will pay 16 weeks of base pay plus two additional weeks for every year of service, with no cap, pay for all remaining PTO time, and cover the cost of healthcare for the laid-off employees and their families for six months.
He further added that every one of them affected will receive their vesting on November 15, 2022, and that he will provide immigration support and three months of career support.
Mark, thanked the laid-off employees for their hard work and said Meta will be extending its hiring freeze through Q1 with a small number of exceptions. He also encouraged those not affected and said that with their help he would come out of the downturn stronger.
“I believe we are deeply underestimated as a company today. Billions of people use our services to connect, and our communities keep growing. Our core business is among the most profitable ever built, with huge potential ahead.” He added,
“And we’re leading in developing the technology to define the future of social connection and the next computing platform. We do historically important work. I’m confident that if we work efficiently, we’ll come out of this downturn stronger and more resilient than ever.” He said.
With this layoff, Meta has joined the list of tech companies that have laid off their workers this year. Some of these tech companies include Twitter, Stripe, Robinhood, Microsoft, Chime, OpenSea, and more.
