Meta is laying off 11,000 employees that make up 13% of its workforce.
The move is happening as the company struggles with revenue loss and other issues plaguing the tech industry, according to a letter sent by CEO Mark Zuckerberg to employees.
The letter was sent Wednesday and layoffs come not long after Elon Musk cut a huge percentage of the Twitter workforce just last week.
Tech companies found themselves hiring rapidly during the pandemic, and now are forced to fire many people.
Zuckerberg admitted he was hiring at a fast pace during the pandemic and had expected major growth when it ended. That is noy what happened.
According to My Twin Tiers, Zuckerberg admitted this in a statement.
Overhiring during the pandemic leads to mass firings in the present
“Unfortunately, this did not play out the way I expected,” Zuckerberg said. “ot 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.”
There was a major increase in financial gain for tech companies while the pandemic was playing out. This makes sense because billions of people were stuck inside with nothing to do but scroll through their phones and stay online.
As lockdowns ended and people got back to their regular lives, that major boost fell rapidly, resulting in some major revenue losses.
Online advertising took a massive hit, which is one of Meta’s biggest sources of revenue. Meta shared their first quarterly revenue decline ever this summer, followed by another one in the fall.
Twitter just cut 7,500 people from its work force after Elon Musk took over. He said he had no choice when the company is losing $4 million dollars a day, but did not provide additional details.
An email will go out to workers to let them know if they’re one of the employees being let go. Access to systems through the company will be cut for those losing their jobs due to security reasons.
Those being let go can expect 16 weeks of base pay. Some can expect an extra two weeks for each year they worked with the company. Health insurance will last for six months.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]