For the first time in the company’s 18-year history, such a large number of employees has been laid off.
The company’s chief executive Mark Zuckerberg himself announced the removal of employees.
He cited the fall in revenue as the reason behind this.
New Delhi. Meta Layoffs: Facebook’s parent company Meta said on Wednesday that it will pay employees at least four months’ salary. The company’s Chief Executive Officer (CEO) Mark Zuckerberg said that the company has laid off 13 percent or about 11,000 employees. Which is the biggest layoff ever. Zuckerberg said in a letter to employees on Wednesday that the decision had to be taken due to declining earnings and the ongoing crisis in the technology industry.
For the first time in the company’s 18-year history, such a large number of employees has been laid off. The company’s chief executive Mark Zuckerberg himself announced the removal of employees. He cited the fall in revenue as the reason behind this.
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Know how much you will get salary
Zuckerberg told employees on Wednesday that he would be sent an email telling him whether his name was on layoffs. He said the former employees would be given 16 weeks of basic pay, as well as two additional weeks of salary for every year spent with the company. Health insurance for these employees and their families will continue for six months.
Zuckerberg holds himself responsible
Regarding the layoffs, Zuckerberg said in a statement, “Unfortunately, it is not as per my expectation.” “The previous trends in online commerce are back, but at the same time our revenues have fallen far below what I expected due to the macroeconomic slowdown, increased competition and signs of reduced advertising,” he said. I misunderstood it and I take responsibility for it.
Elon Musk showed the way out to 50% of the employees
Earlier, billionaire businessman Elon Musk had shown a massive exit of employees there after the acquisition of Twitter. Last week, Twitter laid off nearly 50 percent of its 7,500 employees. Like other social media companies, Meta also registered strong growth during the lockdown implemented due to the pandemic. During this, a large number of people stayed at home and spent more time on their phones and computers.
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Decrease in biggest source of income
The crisis for the company increased due to the reduction in online advertising and the economic slowdown, the biggest source of Meta’s income. This summer Meta experienced a quarterly earnings decline for the first time in its history. Investors are also worried about Meta investing more than $10 billion a year in the “Metaverse” as it is shifting its focus away from the social media business. Meta and its advertisers are facing a potential slowdown.
Apple’s privacy tools are also facing challenges, making it harder for social media platforms like Facebook, Instagram and Snap to track people without consent and deliver targeted ads. Zuckerberg said that we have cut the cost of our business, which includes reducing budget, reducing allowances and reducing real estate expenses. We are restructuring the team to increase our efficiency. But with only these measures, our expenses will not be able to match our earnings. That’s why I have also taken the difficult decision of laying off people.
Tags: Facebook Outage, Facebook’s founder and chief executive, Mark Zuckerberg
FIRST PUBLISHED : November 09, 2022, 18:55 IST