In one of the largest mass layoffs, Facebook founder and CEO Mark Zuckerberg announced the layoff of a total of 11.000 workers.
“Today I'm announcing some of the most difficult changes in Meta history. I have decided to reduce the size of our team by 13% and lay off more than 11.000 of our talented employees," Zuckerberg said in his letter to Facebook employees.
In the same letter it said that "we are taking additional steps to become a tighter and more efficient company by cutting available expenses and extending the hiring freeze into the first quarter of 2023."
It is noted that Meta had around 87.000 employees at the end of September.
"This is a sad moment and there is no other way. To those who are being laid off, I want to thank you for everything you have done for this company," Zuckerberg added in his letter.
According to his decision, the fired employees will receive four months' compensation and two additional weeks for each year of service with the company, with Meta undertaking to cover six months' health insurance.
The layoffs come at a difficult time for Meta, with its share price down nearly 20% in the shadow of its earnings news for the final quarter of 2022.
What worries investors is that Meta's costs and expenses are rising having reached $22,1 billion in the third quarter of 2022 while sales fell 4% to $27,71 billion for the same period .
According to the Wall Street Journal report that revealed the big "scissors" at Meta, in a meeting with the company's executives, Zuckerberg took the company's business stumbles on himself, saying that his overoptimism about the company's growth led to excessive recruitment.
As analysts observe, the number of layoffs announced by Zuckerberg is three times the number announced a few days ago by the new owner of Twitter, Elon Musk.
Source: protothema.gr