Meta lays off over 11,000 employees

GLOBAL: Tech giant Meta announced last week that it has cut 13% of its workforce, or 11,000 employees to minimise risks amid uncertain economic conditions.

At the same time, Meta is also cutting discretionary spending and extending our hiring freeze through quarter one of 2023 (Q12023), Mark Zuckerberg, the company’s chief executive, said in a message to employees.

“Not 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,” Zuckerberg said.

Employees who were retrenched will be compensated for 16 weeks of pay. Meta has also offered them health insurance for six months.

Zuckerberg added that some teams will be affected more than others, including recruitment.

“Recruiting will be disproportionately affected since we’re planning to hire fewer people next year. We’re also restructuring our business teams more substantially. This is not a reflection of the great work these groups have done, but what we need going forward,” he said.

Apart from job cuts, Meta plans to reduce office space, and discretionary spending as well as extend a hiring freeze into the first quarter to minimise expenses.

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