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Meta Is Laying Off More Than 11,000 Employees

Meta Laying Off More Than 11,000 Employees

Meta is laying off 13% of its workforce, or more than 11,000 employees, according to CEO Mark Zuckerberg’s letter to employees on Wednesday.

“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” Zuckerberg said in the letter.

“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 several additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.”

The job cuts come at a troubled time for Facebook parent firm Meta, which offered guidance for its impending fourth-quarter earnings in late October, spooking investors and causing its shares to drop over 20%.

Investors have been concerned about Meta’s escalating costs and expenses, which increased 19% yearly to $22.1 billion in the third quarter. In the third quarter, the company’s overall sales fell 4% to $27.71 billion, while operating income fell 46% to $5.66 billion from the previous year.

“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 for those impacted.” Zuckerberg said.

He stated that Meta is making cuts across the board but that recruiting will be disproportionately impacted because the company wants to hire fewer workers in 2023. With a few exceptions, the company has extended its hiring freeze until the first quarter, according to Zuckerberg.

“This is a sad moment, and there’s no way around that. So to those who are leaving, I want to thank you again for everything you’ve put into this place,” he added.

Employees affected will receive 16 weeks of compensation plus two weeks for each year of service, according to Zuckerberg. In addition, meta will pay for six months of health insurance.