As if things couldn’t get worse in 2022. While the tech sector is dealing with its own set of issues, the cryptocurrency markets are already in a state of shock. Meta also disclosed that it would follow Twitter’s lead and implement similar measures. It has now been revealed that the choice will have an impact on 11,000 Meta employees, or roughly 13% of the workforce. CEO Mark Zuckerberg made the news on his company blog.
One of the largest IT businesses in the world is called Meta. However, the business hasn’t been able to turn a profit, much like the wider financial situation. The corporation is making the layoffs in an effort to “become leaner and more efficient.”
Zuckerberg expressed his regret to the impacted parties, saying;
“I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.”
The issues started, in Zuckerberg’s opinion, with COVID. Zuckerberg “substantially increased” investments as a result of the rise in e-commerce and internet resources. The assumption underlying this choice was that the increase would persist after the outbreak.
He clarified, though;
“Unfortunately, this did not play out the way I expected.”
According to Zuckerberg, Meta will concentrate more on a few key growth sectors, such as advertising, artificial intelligence, and the metaverse.
“16 weeks of basic pay plus two additional weeks for every year of service, without cap” will be given to the laid-off workers. Additionally, the company would “provide three months of career coaching with an outside vendor, including early access to unpublished employment leads.”
What has led Meta to tumble so drastically?
Despite the general decline in tech equities, Meta has been particularly heavily hit. The growth of competing services like TikTok has significantly impeded it.
Meta has spent $9.4 billion on its metaverse technology as of 2022, and it expects to invest a lot more in the future. The company’s flagship metaverse social platform, Horizon Worlds, hasn’t exactly garnered much notice either. We’ll have to wait and watch how the business performs going forward.
At the time of this publication, Meta stock was down 0.26%, trading at $96.47.