Meta fires over 11,000 employees
Over 11,000 employees have been fired by Meta, the parent company of Facebook. The company has been trying to reduce overall costs since the last quarter. A cutting of this scale is for the first time in the history of the company. According to Mark Zuckerberg, there is a need for the company to become more capital-efficient with an emphasis on AI discovery engine, business platforms, ads, as well as its metaverse project.
Sacked employees are promised six weeks of basic pay with two additional weeks for every year of service as a part of the severance package. The cost of healthcare will also be covered for those employees for six months.
Zuckerberg said: "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.”
This decision comes days after Twitter laid off around 50% of its employees globally following the platform’s takeover by Elon Musk.