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Meta CEO Mark Zuckerberg announced that the company will lay off 11000 employees or 13 percent of it’s global workforce due to slower revenue growth. This is the first mass layoff in the company’s history since it’s inception 18 years ago and it joined other tech companies like Musk-owned Twitter and Microsoft as they also are undergoing mass layoffs. Mark Zuckerberg announced the move in a blog post shared on Facebook’s new room.

He said, “At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected.”

Zuckerberg said that he takes responsibility for all this as he made the decision to increase Meta’s investment after the increase in revenue due to the global pandemic as users spend more revenue on eCommerce during the pandemic. He said that his decision during the pandemic did not pay well as there is an economic downturn after the pandemic which led to lower-than-expected revenue.

The popularity of TikTok in recent years and the change of Apple’s privacy policy following the launch of iOS 15 has also impacted Meta’s business severely, especially the revenue that comes from advertisement. In 2022, Meta lost around $9.4 billion on it’s Metaverse initiative and the company said that it will spend more in the coming years on this technology.

Apart from mass lay off, the company is also limiting discretionary spending and also extending the hiring freeze in the first quarter of 2023. As the company is planning to hire fewer employees in 2023, the recruitment team of the company will be most affected by this situation after the completion of the mass layoff.

Mark Zuckerberg further said Meta would now “become a leaner and more efficient” company by reducing staff and spending. The company now shifts it’s focus on “a smaller number of high-priority growth areas,” which includes advertisements, AI, and Metaverse.

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