According to a report, Mark Zuckerberg has declared that Meta would be laying off 11,000 workers, or roughly 13% of its total workforce. In addition, Meta will be implementing a series of measures designed to make the company more streamlined and productive. On Wednesday morning, Zuckerberg sent a memo to Meta workers in which he admitted that he was about to implement some of the most challenging changes in the company’s history. According to Zuckerberg, Meta will concentrate its efforts on a handful of key initiatives, such as its artificial intelligence discovery engine, its advertising as well as commercial platforms, and Zuckerberg’s goal for the evolution of the Metaverse.
We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint. We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.
The advent of Covid coincided with a period of rapid global digitization and a subsequent boom in online commerce, both of which contributed to unprecedented levels of economic expansion. Many speculated that this quickening might be permanent and persist long after the pandemic was over. Consequently, Zuckerberg decided to substantially expand their investments. It didn’t work out the way he had hoped. However, the global downturn, greater competition, and loss of advertisements signal have all contributed to significantly lesser revenue for Meta than was anticipated.
Competition from TikTok and a general decrease in online advertising spending led to a second straight quarterly decline in sales for Meta, which was announced last month. The core of Meta’s business, ad sales, have been hurt by an Apple iOS privacy change from last year, which reduces advertisers’ ability to target consumers.
As of Wednesday, employees who were laid off from Meta no longer have access to the company’s internal systems, but their email accounts will remain operational until then.