Mark Zuckerberg, CEO of Meta, has announced the layoff of 11,000 employees in an effort to create a ‘leaner and more efficient company.’
The Facebook founder announced that he had sent a message to all of his employees outlining the company’s “difficult challenges.”
These difficulties were to be met by laying off approximately 11,000 employees, or roughly 13% of Meta’s total workforce.
These layoffs come at a time when Zuckerberg has spent roughly $15 billion on the Metaverse, his virtual reality pet project that has done little more than attract criticism and hold the occasional cartoon meeting with one of his employees.
Zuckerberg also announced that a hiring freeze would be in effect until the new year, making it unlikely that any of those who had been laid off would soon be hired back.
He stated that he would “take accountability for these decisions” and expressed “special regret to those affected.”
Those who are laid off will receive 16 weeks of severance pay, plus two weeks for every year they have worked for Meta.
In an attempt to explain why a company the size of Meta had to lay off 11,000 people, Zuckerberg claimed that the coronavirus pandemic was one of the main causes.
While many companies were affected by Covid-19 and had to make cuts as a result, Zuckerberg stated that the pandemic resulted in a “surge of e-commerce” and “outsized revenue growth,” which made a lot of money for Meta.
He wrote that the surge in revenue from the pandemic led them to believe they would see a “permanent acceleration,” but that was not the case.
After spending a lot of money while making a lot of money during Covid, now that revenues are down (and Zuckerberg has spent $15 billion on the Metaverse, which doesn’t really do anything), they need to cut costs, which means employee heads will roll.
He began 2022 with a net worth of around $125 billion, but he’s now down to less than half that, with a value of around $55 billion… though that’s still a pretty nice sum.
For the first time in several years, Zuckerberg has dropped out of the top ten richest Americans list.
Meta isn’t the only major technology company laying off employees as part of a cost-cutting drive, with Twitter laying off a large number of employees following the arrival of new CEO Elon Musk.
However, some of those who were fired from Twitter were later asked if they could please forget about being fired and return to their previous jobs because they were apparently laid off by mistake.