: Meta cuts 11,000 jobs #finance #StockMarketNEWS #Business It contends with faltering revenue and broader tech industry woes New York: Facebook parent Meta is laying off 11,000 people, about 13%

Posted in: #finance #StockMarketNEWS #Business

Meta cuts 11,000 jobs #finance #StockMarketNEWS #Business
It contends with faltering revenue and broader tech industry woes

New York: Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.

The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. There have been numerous job cuts at other tech companies that hired rapidly during the pandemic.

Zuckerberg as well said that he had made the decision to hire aggressively, anticipating rapid growth even after the pandemic ended. “Unfortunately, this did not play out the way I expected,�? Zuckerberg said in a prepared statement.

“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, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers. But as the lockdowns ended and people started going outside again, revenue growth began to falter.

An economic slowdown and a grim outlook for online advertising — by far Meta’s biggest revenue source — have contributed to Meta’s woes.

This summer, Meta posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.

Meta has worried investors by pouring over billion a year into the “metaverse�? as it shifts its focus away from social media. Zuckerberg predicts the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people use technology. Meta and its advertisers are bracing for a potential recession.

“We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint,�? Zuckerberg said.

�?We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go. �?

Zuckerberg told employees Wednesday that they will receive an email letting them know if they are among those being let go. Access to most company systems will be cut off for people losing their jobs, he said, due to the sensitive nature of that information.

“We’re keeping email addresses active throughout the day so everyone can say farewell,�? Zuckerberg said.