One of the most extensive layoffs in the US this year, Meta announced it would lay off more than 11,000 people or 13% of its entire staff.
Zuckerberg stated that he was implementing “some of the most challenging adjustments we’ve ever made in Meta’s existence” in a statement sent to staff members on Wednesday morning.
CEO and co-founder of Meta, Mark Zuckerberg, wrote in a blog entry on the company’s official newsroom:
“I want to take accountability for these decisions and for how we got here.”
He continued:
“I apologize to those affected, as I know this is difficult for everyone. He cited the tech industry’s post-Covid fast acceleration as the cause of the revenue loss.”
According to Zuckerberg, a “smaller handful of high-priority growth areas” would now receive more of Meta’s resources. These areas include the company’s AI discovery engine, its commercial and business platforms, and Zuckerberg’s much-discussed long-term plan for creating the Metaverse.
“Many believed this acceleration would last forever and continue long after the pandemic. I decided to boost our investments because I felt the same way dramatically. Unfortunately, things did not turn out the way he had anticipated.
I think our company is currently greatly undervalued. Our communities continue expanding as billions of people use our connected services.”
Zuckerberg said.
According to Zuckerberg, their main business has one of the highest profitability rates. He also said they’d emerge from this downturn more substantially and resilient than ever provided everything works well.
Additionally, he stated that all affected employees would receive 16 weeks of base pay plus an additional two weeks for every year of service, with no cap, and that the organization would offer “specialized immigration professionals” to people employed by Meta on a visa and who would probably be negatively affected by the loss of jobs.
How will fired workers benefit?
The blog post specifies base pay, health insurance benefits, and an offer of immigration support for people who are already in the US on a work visa. What the post states are as follows:
- Sixteen weeks of severance compensation: Meta will provide 16 weeks of base pay plus an additional two weeks for each year of employment without a cap. Additionally, it will cover all of the employees’ remaining Paid Time Off (PTO). Before November 15, 2022, vesting, all impacted workers will receive their dues.
- Health insurance: Meta will pay for all healthcare expenses for individuals and their families for six months.
Additionally, the business intends to offer three months of career help through a third-party partner, including early access to unreleased employment leads.
Meta will provide a similar level of support and a unique procedure that considers regional employment rules for workers outside of the US.
How will staff members be informed?
“Everyone will shortly get an email informing them of the implications of this layoff. Following that, every affected employee will have the chance to get in touch with someone, have their queries addressed, and attend information sessions.”
Wrote Zuckerberg.
Given the extent of access to sensitive information, Meta will block access to most systems for those who lose their jobs. However, the statement states that it will keep “email addresses active throughout the day so everyone may say goodbye.”
Which teams are more affected?
The post claims the cuts will affect every company division, including Facebook, Instagram, WhatsApp, Messenger, and its Reality Labs. The piece does state that “certain teams will be affected more than others.” Next year, Meta wants to hire fewer individuals and significantly reorganize its “business teams.”
More of these adjustments will be implemented in the upcoming months, including other cost-cutting initiatives like “lowering real estate footprint” and “transitioning to desk sharing for workers who already spend most of their time outside the office.”
Source: https://crypto.news/mark-zuckerbergs-meta-to-fire-11000-employees/