On Wednesday this week, Meta CEO Mark Zuckerberg announced that the company is laying off 13% of its staff. This is equivalent to about 11,000 employees, a huge number to let go from just one organization at a time when people are living on the edge.
In a letter to employees, Zuckerberg said, “Today I’m sharing some of the most difficult changes we’ve made in Meta’s history. I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.”
Zuckerberg emphasized that the company will see reduced hiring in the coming days. In the letter, The Meta CEO said that the company had made significant investments during the Covid-19 pandemic in the hope that uptake of e-commerce business would continue, but several factors have hilted this growth.
“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. I got this wrong, and I take responsibility for that,” he wrote.
Similar reorganization trends have been witnessed in nearly all big-tech companies. Twitter has been on a layoff spree since Elon Musk took over, and no one seems to have a clear roadmap on how and when the industry would stabilize again.