Meta has announced that it will lay off 11,000 employees or around 13% of its current workforce.
Recently, Meta, the parent company of Facebook, was rumored to have its first massive workforce layoff to cut the costs of the company, as stated by the Wall Street Journal. Then, Meta announced that it will get rid of 11,000 employees. The layoff process has already started.
Besides the layoffs, Mark Zuckerberg, CEO of Meta, stated that there will also be a hiring freeze until the first quarter of 2023.
Mark Zuckerberg also stated that the layoffs are his responsibility and that he takes full accountability.
Besides the layoffs, Meta may stop some of its investments due to the current downtrend of the firm’s stocks, given that revenues have fallen.
In the recent financial reports of the third quarter of the year, Meta showed billions of dollars worth of losses. Its metaverse R&D department alone had a $3.67 billion loss in the third quarter.
Moreover, revenues reported worth $285 million were the lowest in quite a while for Meta. This led to FUD for Meta’s shareholders. Meta stocks have also declined throughout the year. The latter started asking questions regarding Metaverse-related endeavors that Meta has recently focused on.
But Meta is not the only one having major layoffs in its company. Other companies also had major layoffs recently. For instance, Elon Musk’s Twitter laid off 50% of its workforce. Here is a list of some of the companies having huge layoffs because of the macroeconomic downturn.