Meta cuts headcount after poor projection for the future.
Meta announced Wednesday that it will let go 11,000 employees, 13% of its workforce, in the first huge round of mass layoffs in the company’s 18-year history. Mark Zuckerberg was hit pretty hard by the downturn in ad revenue from his multibillion-dollar, and for now ruinous, Metaverse bet. “I want to accept responsibility for this election and how we got here,” the Meta boss has identified. Zuckerberg assumes he was mistaken to offer for granted that trade increase would continue at the pace achieved at the extent of the pandemic, 2 years in which the tech giant’s earnings went through the roof, but the macroeconomic downturn, growing competition, and falling advertisements meant Meta’s earnings are a hell of a lot lower than he assumed. The company contracted 52% in Q3 2022, to $4.395 billion. Those numbers marked the second quarterly drop in earnings in its history. The drop is more than 70% year-to-date and has relegated Zuckerberg to the list of the richest men in the entire world. The idea of the metaverse Investment efforts remain focused on the Metaverse, the virtual world that Zuckerberg believes will interpret the future of the internet. For the time being, it is a sunk investment: some 15 million Quest 2 glasses and Beat Taste, the platform’s most successful video game, have been sold. These figures are still insignificant compared to the tens of millions of millions dedicated to the plan, which have resulted in criticism of the company for allocating many resources to the metaverse when profits were already showing signs of exhaustion months ago. Compensation for those affected The company gives to the dismissed, who will receive all day long correspondence with the information both in the USA and worldwide, a compensation equivalent to 16 weeks of salary, plus 2 extra weeks for all the years in staff, without a ceiling. In addition, it will pay outstanding vacation pay and 6 months of health insurance for employees and their families, among other measures. Employees who were to receive the pay in occupations due the following week will be entitled to it. In his message, Zuckerberg pays particular attention to foreign workers hired by the company in the USA: “I know it’s especially if you’re here on a visa. A bad day for the tech community As of the beginning of the year, well over 50,000 workers in tech organizations were laid off. Other companies that have announced job cuts include Coinbase, Carvana, GoPuff, Better, Invitae, Robinhood, and Shopify, from different segments.
