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Sunday, December 4, 2022
HomeEconomyMeta, owner of Facebook, lays off more than 11,000 employees

Meta, owner of Facebook, lays off more than 11,000 employees

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Meta Platforms announced this Wednesday (9) that it will lay off 13% of its team, more than 11 thousand employees. The mass layoffs, the company’s first in 18 years, is one of the biggest tech companies this year, and comes as Facebook’s parent company struggles with rising costs and a weak advertising market.

The job cuts follow thousands of other big tech layoffs, including Elon Musk’s Twitter and Microsoft.

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The explosion in the pandemic that boosted tech companies and their valuations has turned into a boom this year, in the face of the highest inflation in decades and fast-rising interest rates.

The company’s CEO, Mark Zuckerberg, said in a message to employees that while online commerce has returned to what it was before, so too has the macroeconomic slowdown, increased competition and the loss of ads. Which made Meta’s revenue lower than he’d expected.

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“I got it wrong, and I take responsibility for that,” Zuckerberg said.

He stressed the need to become more capital efficient and said the company will shift resources to “high-priority growth areas” such as its AI discovery engine, advertising and business platforms, as well as its project. metaverse.

Meta said it will pay 16 weeks of base salary plus two additional weeks for each year of service as part of the severance package, and all remaining paid time.

Employees will receive the cost of health plans for six months and those affected will receive their vested rights until November 15, according to the company.

Meta said it also intends to cut discretionary spending and extend its hiring freeze into the first quarter.

The company’s shares, which have lost more than two-thirds of their value, are up about 3% in premarket trading.

Translated by Luiz Roberto Goncalves

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