Facebook parent Meta cuts staff by 11,000 employees
(CBS DETROIT) - Facebook parent company Meta announced Wednesday the social media giant is making substantial cuts to its workforce.
"Today I'm sharing some of the most difficult changes we've made in Meta's history," said Mark Zuckerberg, Meta founder and CEO. "I've decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go."
The announcement comes after the company said it saw significantly lower revenue than expected after the COVID pandemic.
"At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth," said Zuckerberg. "Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected."
Zuckerberg said shopping trends reverted to pre-pandemic ways.
"I got this wrong, and I take responsibility for that," said Zuckerberg.
He added other factors were also to blame for the company's loss including the macroeconomic downturn, increased competition and ads signal loss.
"This is a sad moment, and there's no way around that," said Zuckerberg.
He said every employee will get an email explaining how the layoffs will impact them. Zuckerberg said every affected employee will have the opportunity to speak with someone to get their questions answered and join information sessions.
As of the announcement, the company said they have removed access to most Meta systems for those leaving company, citing the amount of access these employees had to sensitive information.
According to the company, those laid off will receive 16 weeks severance, reimbursement for remaining paid time off, health insurance for six months and more.
"The teammates who will be leaving us are talented and passionate, and have made an important impact on our company and community," said Zuckerberg. "Each of you have helped make Meta a success, and I'm grateful for it. I'm sure you'll go on to do great work at other places."
In addition to layoffs, the company said it is extending its hiring freeze, reducing its real estate footprint, among other changes in the coming month.
"To those who are staying, I know this is a difficult time for you too," said Zuckerberg. "Not only are we saying goodbye to people we've worked closely with, but many of you also feel uncertainty about the future. I want you to know that we're making these decisions to make sure our future is strong."
Zuckerberg said the company is deeply underestimated as billions of people use their services to connect.
"I'm confident that if we work efficiently, we'll come out of this downturn stronger and more resilient than ever," said Zuckerberg.
In the announcement's footnote a disclaimer explained many of the statements made are forward-looking and are only predictions which may differ from actual results.
The full announcement can be read here.