Facebook owner Meta fires 11,000 people

The messages were true.

Facebook’s umbrella company Meta is laying off 11,000 employees, or about 13 percent of its workforce. The company also plans to cut discretionary spending and extend the hiring freeze into the next quarter.

Company CEO Mark Zuckerberg shared the news in a blog post Wednesday, saying the decision was one of the “hardest” in Meta’s history.

“I want to take responsibility for these decisions and for how we got here. I know this is difficult for everyone, and I am especially sorry for those affected,” he wrote.

In the post, Zuckerberg blames his response to the COVID pandemic, which initially led to “excessive revenue growth”.

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“Many people predicted that this would be a permanent acceleration that would continue even after the end of the pandemic. So did I, so I made the decision to significantly increase our investments. Unfortunately, this did not go as I expected,” he wrote. he. “The macroeconomic downturn, increased competition and the loss of advertising signal has resulted in our revenues being much lower than I expected.”

The decision comes after a decrease in turnover and a sharp one fall in share pricefueled in part by Zuckerberg’s insistence to invest billions of dollars in the virtual reality ecosystem called the metaverse.

Zuckerberg didn’t give up on the metaverse, though. “We’ve moved more of our resources into a smaller number of high-priority growth areas, such as our AI detection engine, our advertising and business platforms, and our long-term vision for the metaverse,” he wrote in the note announcing the layoffs. .

The workers who were laid off largely lost access to Meta systems on Wednesday, which Zuckerberg said was due to the “amount of access to sensitive information.” They will receive 16 weeks of severance pay, plus two additional weeks for each year of service, paid remaining PTO time and six months of medical care for them and their families, among other support measures.

As for what comes next, Zuckerberg said the company will share more about how it plans to move forward “in the coming weeks.”

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