ZUCKERBERG SAYS HIS 'MISTAKE' FORCED META TO LAY OFF 11,000 EMPLOYEES
Mark Zuckerberg, CEO of Meta, said that it was his fault that the social network business had to make job cuts after announcing that about 11,000 people, or around 13% of the whole workforce, will be let go. He claimed he had been "overoptimistic" on the company's expansion.
In a blog post that was posted on Meta's website, Zuckerberg claimed that "during the beginning of COVID, the world swiftly shifted online and the explosion of e-commerce led to outsized revenue growth."
"Many individuals believed that this acceleration would be permanent and carry on long after the pandemic was over. I did as well, therefore I decided to greatly boost our investments," he continued.
He said that the plan "unfortunately did not play out the way" he had anticipated.
According to Meta Boss, the company would become "leaner and more efficient" as a result of the layoffs. The business would focus on "a smaller handful of high-priority development areas," such as AI, the metaverse, and even advertisements. The recruiting team would be "disproportionately affected," he continued, and would be the squad most impacted by the downsizing.
Companies' momentum has been impacted by a dramatic decline in the US economy. According to The Verge, Meta has formidable competitors and must act quickly to get things back on track. Meta is worried about its future since TikTok has taken over social media and Apple is severely hurting its ad business.
Zuckerberg appears to have faith in the project and thinks it will rule the globe in ten years, yet Meta lost $9.4 billion in 2022 on its metaverse technology alone.
This year, the company's stock price suffered, falling by more than 70%. The outcome was a $700 billion decline in the giant's market worth during the previous two weeks.
In a blog post, Zuckerberg stated that sacked US employees of Meta will receive at least four months' base pay. Along with assistance in finding new jobs, they will also receive health insurance for the following six months.
At the very conclusion of the blog, Zuckerberg stated, "I think we are a firm that is seriously underrated right now.
"Billions of individuals connect using our services, and our communities are always expanding. One of the most profitable companies ever founded, our main business has enormous future potential. We are also at the forefront of inventing the technologies that will determine how people will connect in the future and the next platform for computers.
Since its founding in 2004, Meta has never before declared such significant employment layoffs.
