“Today I share with you some of the most difficult changes we have made in the history of Meta,” announced the group’s executive director, mark zuckerbergin a message addressed to employees.
“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,” he added.
“I want to take responsibility for these decisions and how we got here. I know this is hard for everyone, and I’m especially sorry to those affected,” Zuckerberg said.
As of September 30, Meta had some 87,000 employees around the world on its staff on its different platforms, which include the social networks Facebook and Instagram, as well as the WhatsApp messaging platform.
The company recently published disappointing quarterly resultswith a drop in turnover and profits, as well as a stagnation in the number of users. After the quarterly balance was known, the company’s shares collapsed up to 24%
The The tech industry is currently going through a severe recession. and several large companies have announced massive layoffs. The new owner of Twitter, Elon Muskfired half of its staff last week, saying the company was losing $4 million a day.
Another of the arguments put forward by the sector is that they trusted that the growth levels that technology companies had during the pandemic would be sustained, which led them to accelerate hiring.
The layoffs in the US tech industry marked in October highest level since the pandemic of coronavirus and it is expected that the trend continue hand in hand with one slowing economy, interest rates on the rise and balance sheets that baffle investors.
In October alone, the sector lost 9,587 jobs, the highest monthly number since November 2020, in the midst of the pandemic. Among the main causes are the cutbacks of advertisers, affected by the recession, and the strength of the dollar, which makes technology shares less attractive.
After the announcement of the layoffs, made this Wednesday morning, theMeta shares soar on Wall Street up to 6.4% and hit US$103a value that has not reached since the lowest on October 27, when they collapsed after the announcement of the quarterly balance.
Source: Ambito
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