Mark Zuckerberg memo: Meta to cut 11,000 jobs today

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Mark Zuckerberg, chairman of Facebook parent company Meta, announced today that the company will lay off 11,000 employees, or 13% of its current global workforce. Affected employees will be notified today.

Company It reported its Q3 earnings last monthRevenue fell $4 billion year-over-year to $27.7 billion and there was no growth in user numbers across its core family of apps, Facebook, Instagram and WhatsApp.

With layoffs in the tech industry over the past few months, layoffs of this magnitude at one of the top tech companies are a sign of how tough things are for even some of the world’s most valuable companies. So far Meta has conducted targeted hiring freezes, but not announced layoffs.

“Today I’m sharing some of the most difficult changes we’ve made in the history of the meta,” Zuckerberg said in a letter to employees Also published on Meta’s website.

“I have decided to reduce the size of our team by approximately 13% and let go of more than 11,000 of our talented employees. We are taking several additional steps to become a leaner and more efficient company by reducing discretionary spending and extending our hiring freeze through Q1.”

As of September 30, 2022, Meta’s global workforce was 87,314, an increase of 28% year-over-year. In the Q3 earnings update, Meta said It expects its headcount at the end of 2023 to be roughly in line with its Q3 2022 levels. It started hiring disabled people in some areas of the business, but not in others, notably AI and VR/AR, or Meta’s Reality Labs.

Meta will provide affected employees in the US with 16 weeks of severance and two additional weeks for each year of service with no cap; Remaining paid leave; RSU Vesting; Medical insurance for the next six months; Professional services; and “immigration support” for visa-dependent employees. According to Zuckerberg, support outside the US will be “similar”.

But Meta immediately cuts off computer access for affected employees.

“Today we’ve decided to remove access to most meta systems for people leaving. Given the level of access to sensitive information, we’re keeping email addresses active throughout the day so everyone can say goodbye,” Zuckerberg wrote.

Zuckerberg said he made some wrong bets based on expectations about what happened in the Covid-19 pandemic.

“At the onset of Covid, the world rapidly moved online and the rise of e-commerce led to higher revenue growth. Many predicted a permanent acceleration that would continue after the pandemic ended. So did I, and so did I. The decision to significantly increase our investments,” he wrote.

“Unfortunately, it didn’t work out the way I expected. Not only did online commerce return to previous trends, but the macroeconomic downturn, increased competition, and the loss of the advertising signal caused our revenue to drop much lower than I expected. I was wrong about this, and I take responsibility for it.”

The cuts will affect the family of apps (Facebook, Instagram, WhatsApp) and Reality Labs, Zuckerberg said, noting that groups like recruiting will be “disproportionately affected because they plan to hire fewer people next year.”

He added: “We are reorganizing our business teams in a more substantial way. This is not a reflection of the great work these teams have done, but what we need going forward. The heads of each team will schedule time to discuss what this means. Your team over the next couple of days,” he said. Zuckerberg said.

Zuckerberg said the layoffs were a “last resort” and made other changes, including shrinking its real estate footprint and switching to desk-sharing for those who work from home or elsewhere frequently. More cost-cutting changes are happening in the coming months.

Meta will extend its hiring freeze through Q1 “with a small number of exceptions.”

“Fundamentally, we’re making these changes for two reasons: Our revenue outlook is lower than we expected earlier this year, and we want to make sure we’re operating efficiently in both Apps and Reality Labs.” Zuckerberg said.

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