Meta announced this Wednesday (9) that it will lay off 13% of its team, more than 11,000 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.
The boom caused by the pandemic boosted the tech sector, but high inflation and rising interest rates in the US caused a decline.
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.
“I got it wrong, and I take responsibility for that,” Zuckerberg said.
Meta must pay 16 weeks of base salary plus two additional weeks for each year of service, as well as all remaining paid time, as part of the severance package.
Fired employees must also receive their shares, which must be purchased on November 15, and health insurance coverage for six months.
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