Meta, the parent company of Facebook, Instagram and WhatsApp, today (Tuesday, March 14) has announced the removal of more than 10,000 employees. The company has announced retrenchment under the second round. Earlier in November-2022, the company had trimmed the first round.
In the first round, Meta laid off 11,000 employees, which was 13% of the entire workforce. For the first time in the company's 18-year history, such a large number of employees were retrenched. The announcement to remove the employees was made by the company's CEO Mark Zuckerberg. He attributed this to the decline in revenue due to wrong decisions.
Zuckerberg has said that this decision is very difficult, but necessary. After closing 10,000 jobs, the company will keep 5,000 posts vacant. Zuckerberg wrote in a message to the staff that the company suffered a setback in 2022 when it came to know that its revenue had fallen significantly.
Zuckerberg said, "Increased interest rates in the US, volatility in the world and increase in regulatory law are responsible for the decline in the company's earnings." Zuckerberg said in the message, 'I think we should be ready to deal with the new economic situation because this phase is going to be a bit long.'
Zuckerberg said, 'He will first tell the company's recruitment team whose job has gone and whose job is left. Zuckerberg has said that this thing will be clear by Wednesday. "It is expected that the re-structuring and retrenchment will begin in technical groups in April and the process of impacting business groups will begin in May," he said.
Meta had 87,314 employees by the end of September 2022. Meta currently owns some of the largest social media platforms in the world including WhatsApp, Instagram and Facebook. However, the company is increasing its spending on the metaverse.
The Metaverse is a virtual world where users can create their own avatars. The company has been incurring losses due to low law adoption rate and costly R&D. The layoffs are expected to ease the company's financial woes to some extent.