The 11,000 job cuts, which may be the largest in the US this year, were disclosed by Facebook's parent company, Meta.
What caused this decision?
Zuckerberg describes the change as the "most difficult" in the company's history as Meta fires 11,000 employees (1). According to rumors that appeared last week, the megacompany Meta reportedly plans to fire many employees in the next few days. Mark Zuckerberg, the company's CEO, informed Meta staff today that there will be significant layoffs.
The creator of Facebook began by saying, Today, disclosing some of the most challenging adjustments we've ever made at Meta (2). He decided to let more than 11,000 of our excellent colleagues go to lower the size of our team by around 13%. These layoffs are among the biggest in the US this year, if not the biggest, and they follow several other large-scale layoffs at well-known corporations, like Elon Musk's Twitter. In addition, Zuckerberg said, reducing discretionary expenditure and extending our hiring freeze through Q1 to build a smaller and more effective organization.
Due to increased expenditures made during the COVID digital boom that never materialized due to a shift in the industry, the company was obliged to make these decisions. Online sales have not only resumed their previous patterns, but our revenue has been substantially lower than anticipated due to the financial slump, increasing competition, and ad signal loss. He made a mistake here, and he accepts responsibility for it, says the boss of the business.
Meta's Stock Price
The company's stock is selling at roughly $96 per share, down 28% over the past three months. The value of the asset's recent trend is shown in the chart below.