Mark Zuckerberg released a message saying that more than 11,000 “talented employees” will be laid off, which is 13% of the total workforce. The Facebook founder said he takes responsibility and is “deeply sorry” for those affected. He pointed to misguided views on investment, a weak advertising market and a macroeconomic downturn as some of the reasons for mass layoffs.
The executive said that predictions of how the online world would move forward after Covid-19 were not met and the company faced intense competition, advertising losses, which reduced revenue. Meta “must be more capital efficient” and shift resources to a smaller number of high-priorities, such as an AI discovery engine, as well as a long-term vision for MetaVas.
The company cuts budgets, cuts benefits and shrinks its real estate footprint, meaning employees will have to share desks in the future. All of these measures are not enough to sustain the revenue growth, and that is why Zuckerberg decided to lay off 13% of the entire workforce.
Terminated employees in the United States will receive severance pay, paid PTO, health insurance for the next six months, and assisted career support through a third-party provider. The support will be the same outside the US, the letter reads, taking into account local labor laws.