The company Meta, which owns Facebook, Instagram, and WhatsApp, started laying off workers today. About 11,000 workers, or about 13 percent of the total number of employees, will be dismissed. It is the most significant job reduction in the company's history.
“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” Zuckerberg said in the letter. “I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go.
We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1”. A day before the layoffs began, Zuckerberg met with executives to discuss the layoffs, the New York Times reported, citing two people who were present at the meeting.
One of those people told the American newspaper that the CEO took responsibility for the reduction in the number of employees, saying that his company had grown too fast. “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”. Zuckerberg said. Meta also canceled travel plans for employees to ensure they were available for meetings with managers if their team was affected by the layoffs, three other people said.
“This is a sad moment, and there’s no way around that. To those who are leaving, I want to thank you again for everything you’ve put into this place,” he added.
Wednesday morning, Meta shares were up about 7.7%.
At the end of September, Meta had 87,314 employees, which is the largest number of employees in Meta's history.
At one point last year, Meta was valued at $1 billion, but during this year financial problems began for Meta, culminating in layoffs. In July, Zuckerberg warned employees that the company was experiencing "one of the worst downturns we've seen in recent history" and announced a hiring freeze in September.
Last month, he warned that "teams will remain stable or shrink over the next year" and added that the company "will end 2023 roughly the same size or even a slightly smaller organization than it is today."
“That means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” Zuckerberg said. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today”.