Mark Zuckerberg Confirms: Meta Layoffs Will Cut 11,000 Employees

  • Meta (META) layoffs will see 11,000 employees lose their jobs.
  • This comes after too much hiring from the company during the pandemic.
  • CEO Mark Zuckerberg says he was wrong about post-pandemic e-commerce demand.
Meta layoffs. META stock logo is shown on a device screen. Meta is the new corporate name of Facebook.

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Meta Platforms (NASDAQ:META) layoffs are a hot topic on Wednesday after founder and CEO Mark Zuckerberg confirmed job cuts.

This news follows reports earlier this week that the job cuts were on the way. However, those reports claimed only a few thousand jobs would be cut. The actual number is much larger than that. Specifically, 11,000 employees are losing their jobs.

That represents roughly 13% of workers employed at Meta Platforms. To go along with that news, Zuckerberg confirmed that Meta will keep its hiring freeze in effect through the first quarter of 2023.

What’s Behind the Meta Layoffs?

In a message to employees, Zuckerberg directly addresses the company’s need for these layoffs. The CEO notes that hiring increased due to the pandemic, which saw an increase in e-commerce usage.

What Zuckerberg didn’t expect was an eventual drop in demand. Instead, the executive believed that demand would continue even after lockdowns ended. That didn’t turn out to be the case, however.

Here’s a portion of what Zuckerberg had to say about the matter in a note to Meta workers:

“Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”

Meta is offering 16 weeks of severance pay to employees affected by the layoffs. Employees will also get an extra two weeks of pay for each year with the company. Finally, Meta will also cover all paid time off, as well as cover healthcare costs for former employees and their families for six months.

META stock is up 7.6% as of Wednesday morning.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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