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Meta Lays Over 11,000 Employees – Virtual Reality Times

Meta Lays Over 11,000 Employees – Virtual Reality Times

As is widely expected, Meta has laid off more than 11,000 of its employees, which is 13% of its strong workforce of over 87,000 employees.

Mass layoffs represent a turning point in Metta’s growth trajectory. This is the first time that Meta, formerly known as Facebook, has laid off employees. The company has experienced nearly two decades of continuous and unprecedented growth, powered by its social media business. Besides job cuts, the company is also cutting back on other areas of its operations. These include shrinking their budgets, reducing their real estate footprint, and reducing concessions. This is according to an email Mark Zuckerberg sent to employees.

Zuckerberg

In the email, Zuckerberg wrote that the mass layoffs will also add to a cultural shift in how the company operates and that the company is taking additional steps to become “more agile and efficient” by cutting its discretionary spending and extending the company’s hiring freeze through to Q1.

The layoffs came at a time when Mita was going through hard times. Investors have been spooked by falling stock prices and the company’s massive investment in the metaverse that costs it more than $10 billion annually and generates less than $2 billion in revenue.

Meta costs and expenses increased 19% year over year to $22.1 billion in the third quarter. In the same quarter, total Meta sales fell 4% to $27.71 billion. Its operating income decreased 46% from the previous fiscal year and amounted to $5.66 billion.

Meta isn’t the only big tech company with strict cost-cutting measures. Snap, Microsoft have been scaled back and even Apple has frozen their hiring. However, Meta has been hit hard by the company’s huge investment in its losing business which is also happening at a time when its core advertising business is facing tremendous pressure from several quarters including intense competition from TikTok and Apple, Apple’s privacy policies and a tough global economic climate that has negatively impacted on advertising spending.

Zuckerberg wrote that Meta’s revenue has been affected by the overall economic downturn, increased competition, and advertising losses. He admits he got it wrong and apologizes to the Meta staff.

Zuckerberg says Meta will impose cuts at every organization, but that the most affected will be staffing as the company plans to hire fewer people next year. Zuckerberg says the hiring freeze at Meta will extend into the first quarter of the year although “with a few exceptions.”

Meta employees affected by the layoffs will receive 16 weeks of salary plus an additional two weeks for each year of service with the company. The company will also cover employees’ health insurance for six months.

Part of Meta’s financial problems are due to its huge betting in the metaverse. In 2022 so far, the company has spent $9.4 on projects related to metaverses. Meta anticipates that its losses in this market segment will continue to grow significantly year on year.

Zuckerberg said in his third-quarter earnings call, that Meta will focus its investments “on a small number of high-priority growth areas” in 2023. At the time, he stated that some Meta teams will “grow significantly” while others will stay steady or “shrink over the next year (2023)”. He gave a hint about layoffs during his third-quarter earnings call with investors when he stated that the company would either stay the same size or shrink to “even a slightly smaller organization” than it was in September of this year.

source: CNBC

https://virtualrealitytimes.com/2022/11/10/meta-lays-off-over-11000-employees/https://virtualrealitytimes.com/wp-content/uploads/2022/11/Zuckerberg.pnghttps://virtualrealitytimes.com/wp-content/uploads/2022/11/Zuckerberg-150×90.pngRob GrantBusinessAs widely expected, Meta has laid off more than 11,000 of its employees, which is 13% of its strong workforce of over 87,000 employees. Mass layoffs represent a turning point in Metta’s growth trajectory. This is the first time that Meta, formerly known as Facebook, has laid off employees. The company has experienced almost…

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