Meta, the parent company of both Facebook and Instagram, has revealed plans to slash 11,00 people, a 13% reduction in its global workforce.
This is the company’s first major restructuring since its inception in 2004, in response to a declining digital-ad industry and falling stock price.
Meta CEO Mark Zuckerberg announced the move in a blog post, claiming it was his fault for being overly hopeful about the company’s future growth as a result of the pandemic.
He said, “At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth.”
“Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected.”
The company’s recruiting team, according to the 38-year-old CEO, would be “disproportionately affected” by the changes, and Meta will become “leaner and more efficient” as a result, with its current hiring freeze prolonged through the first quarter.
He also stated that resources would be reallocated to a “smaller number of high-priority growth areas,” such as advertising, AI, and the metaverse.
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