Facebook and Meta have been spending a lot of money on Mark Zuckerberg’s Metaverse, the company is apparently spending around $1 billion a month.
Now its parent company Meta has announced that it will be cutting costs by laying off around 11,000 employees. The news was announced by the company’s CEO Mark Zuckerberg.
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.
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.
At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected. 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 also announced that as well as laying off the 11,000 employees, that it will cust spending and also extend its hiring freeze.
Image Credit: Solen Feyissa
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