Meta, Facebook’s parent company, just announced that it is laying off 11,000 of its employees which is around 13% of its staff. This unfortunate move follows the industry wide shutdown that has been shaking Silicon Valley in recent months. This also marks the company’s first ever massive job cut.
Meta CEO Mark Zuckerberg said that laying off a big number of people is “some of the most difficult changes we’ve made in Meta history.” He explained that they overhired during the pandemic as the tech giant was under the assumption that the rapid growth would continue.
In a message addressed to his employees, Zuckerberg admitted his fault. “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”
Meta is also currently on a hiring freeze. The company is also limiting expenses such as non-essential travel. In the same message, Zuckerberg relayed that the freeze hire will continue. Belt-tightening measures and other necessary budget cuts will continue to be employed in the coming months.
Meta employees who will lose their job will receive 16 weeks of severance pay and health insurance for six months. Work visa holders that are let go will be provided assistance with regards to their immigration status.