According to the Wall Street Journal (WSJ), Mark Zuckerberg-owned Meta will begin firing staff members on Wednesday. The CEO made the declaration in front of a large group of executives on Tuesday morning at the corporate headquarters, hinting at significant layoffs.
The number of people who will be asked to leave is unknown, but according to the WSJ, it will be in the thousands, making it the biggest tech industry departure of the year thus far. In the company’s 18-year existence, Wednesday’s layoff would be the first such cut. According to the newspaper’s article citing persons with knowledge of the meeting, Meta’s head of human resources Lori Goler has guaranteed that the laid-off workers will get at least four months of income as severance.
In the discussion, Zuckerberg admitted responsibility for the overstaffing, which he blamed on his optimism over the company’s development potential. He explicitly highlighted hiring and business team layoffs. On Wednesday, the job losses are anticipated to begin about 6 a.m. Eastern time, with the exact employees who would lose their positions being told throughout the morning. In September, Meta stated that over 87,000 people were employed. WSJ reports that business managers had already instructed staff to stop taking unnecessary trips starting this week.
Following the company’s announcement that third-quarter profits had been cut in half, investors last month knocked $80 billion off its market value. Due to the third quarter’s poor earnings results, Meta’s stock has dropped more than 70% this year. The largest single-day loss in the history of a US firm occurred in February when it lost $230 billion in market value.
Notably, Meta is not the first IT firm to announce layoffs. In an effort to boost sales and restructure the business, Twitter Inc. has let hundreds of staff go. The company’s new CEO is Elon Musk. In order to get ready for what it claimed would be an anticipated period of modest sales growth extending into 2023, Snap Inc. also revealed in August that it is aiming to reduce about 20% of personnel, or more than 1,000 people.
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