afaqs! news bureau
Social Media

Meta lets go of 11,000 employees after recording decline in revenues for two consecutive quarters

The company has also announced that it will be freezing all hiring until Q1Y23.

American multinational tech conglomerate Meta has announced that it will be laying off about 11,000 employees globally. This means that the company will let go of about 13% of its total global workforce. It is the first time in the company's 18-year-old history that it has been forced to make such broad job cuts.

It follows Meta's announcement of recording a decline in its revenue in Q3Y22. This is the second consecutive quarter in which the company has reported dip in revenues.

In his address to the laid off employees, Mark Zuckerberg, CEO, Meta, said that the layoffs are a part of a number of steps that the company is planning to take to "become leaner and more efficient" in its operation. He added that the company will be freezing all its hiring until Q1Y23.

He informed that the layoffs were due to some business moves that didn't pan out like the company envisioned.

"Unfortunately, this did not play out the way I expected. Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that."

Meta is not the only social media platform to let go of its employees. Twitter also recently laid off about 3,700 employees, though it later recalled many of them.

Also Read: Twitter begins laying off employees in India: Reports

Meta will give 16 weeks of base pay, plus two additional weeks for every year of service, with no cap, to the laid off employees in the US.

These employees will get the cost of healthcare for themselves and their families for six months. Meta will provide three months of career support with an external vendor, including early access to unpublished job leads. The company will also provide immigration support to these employees.

afaqs! reached out to the company to understand the impact of the layoffs on its India team. We are yet to hear back from it.

Have news to share? Write to us atnewsteam@afaqs.com