Who declined to be named to discuss personal information, employees affected will be notified starting Wednesday morning, and Chief Executive Officer Mark Zuckerberg spoke to executives on Tuesday to prepare for the cuts.
The Wall Street Journal reported that Zuckerberg took responsibility for the company’s “missteps” during the executive call.
In late September, Zuckerberg informed employees that Meta planned to reduce spending and reorganize the teams. A recruitment freeze was set up by Menlo Park, a California-based business that also has Instagram and WhatsApp. According to the CEO, Meta expects the workforce to be less in 2023 than this year.
According to Insider, the corporation, which employed more than 87,000 people as of September 30, is projected to lose about 10% of its workforce. The cuts, which are part of the first significant budget cut since Facebook’s founding in 2004, are due to a sharp drop in digital advertising revenue, an unstable economy on the verge of recession, and Zuckerberg’s significant investment in the metaverse. A speculative attempt at virtual reality.
“It’s clearly a different way of doing things,” Zuckerberg said in a Q&A session with employees in September. “For the first 18 years of the company, we grew pretty fast basically every year, and then recently our revenue has dropped a little bit for the first time. So we have to adjust.”
The layoffs at Meta come after Twitter Inc., which last week terminated nearly 50% of its personnel after selling itself to Elon Musk. Those layoffs were chaotic, and many workers found they were no longer employed when their access to Slack or email was suddenly cut off. Musk claimed that action was needed to stop the loss of the social network. Later, he asked some of the dismissed employees to come back.
Snap Inc., the parent company of competing app Snapchat, said in August that it would cut its personnel by 20%.